Prompt Payment Acts: Federal and State Rules That Force Timely Payment in Construction

Prompt payment acts are statutes that require construction payments — from owners to contractors, from contractors to subs, from subs to suppliers — to be made within specific deadlines, with automatic interest and penalties for late payment. They're the legal framework that backs up contractual payment terms with actual enforcement mechanisms. Here is how federal and state prompt payment acts work, when they apply, and the interest rates that accrue when they don't.