Prompt Payment

Requirement for government to pay invoices within 30 days.

Definition

Prompt Payment Requirement for government to pay invoices within 30 days.

Definition

The Prompt Payment Act requires the government to pay invoices within 30 days of receipt of a proper invoice (or acceptance of goods/services, if later). If payment is late, the contractor is entitled to interest. Understanding prompt payment timelines helps with cash flow management.

Official Source

Prompt Payment Act