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THE NEW MASSACHUSETTS PROMPT PAYMENT ACT AND ITS IMPACT TO NEW HAMPSHIRE CONTRACTORS by Ronald D. Ciotti, Esq. Seth M. Pasakarnis, Esq. Hinckley, Allen & Snyder LLP Introduction Massachusetts.

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In 1982, Congress passed the Prompt Payment Act to require Federal agencies to pay their bills on a timely basis; to pay interest penalties when payments are made late, and to take discounts.

Prompt payment is a commercial discipline which requires businesses to: agree fair and reasonable payment terms with their suppliers. ensure suppliers' invoices are approved and paid within agreed terms. encourage adoption of the same practices throughout their supply chain.

Under the Prompt Payment Act, if an interest penalty is owed to a business concern, the penalty shall be paid regardless of whether the business concern requested payment of such penalty. 31 U.S.C. 3902(c)(1).

The Prompt Payment Rule is designed to ensure that small businesses are paid in a timely manner for the work they perform on federal contracts. Late payments can have a significant impact on small businesses, which often rely on timely payments to maintain cash flow and meet other financial obligations.

In order to qualify under the Prompt Payment Act, the contractor must provide a proper invoice to the government contracting officer. To be considered “proper,” the payment application must include: Name and address of the contractor. Invoice date and invoice number.

Federal Laws. The US Prompt Payment Act requires federal construction contracts to include a prompt payment clause. This requires the prime to pay subcontractors for “satisfactory” performance within seven days of receipt of payment.

If the agency takes the discount, it must pay ing to the discount terms. If the agency does not take the discount, it must pay within 30 days of receiving a proper invoice, unless the agency uses an accelerated payment.

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© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232
Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232