The Prompt Payment Act legally requires the federal government to pay you on time.

By Sean & Doug Reitmeyer — GCExperts. Originally posted on Skool: .

https://gcexperts.com/zoom SUMMARYThis video explains why the Federal Prompt Payment Act is one of the most important financial protections available to any federal construction contractor — and why most builders don’t even realize how powerful it is. Passed in 1982, the Act was created for one purpose: to force the federal government to pay you on time. Not “should,” not “hopefully,” not “when someone gets around to it.” They must. When you’re working on a federal project, your costs start immediately — payroll, suppliers, equipment, insurance, subcontractors. The government, however, moves slowly. Without this law, agencies could hold your money for 60, 90, even 120 days. No small or midsize builder can absorb that kind of delay. So Congress established strict, non-negotiable deadlines: - Progress payments must be paid within 14 days of receiving a proper invoice. - Final payments must be paid within 30 days. - If the government misses these deadlines, interest becomes mandatory — automatically owed. That interest penalty isn’t optional and it isn’t up for interpretation. It is federally required. FAR clauses like FAR Part 32, FAR 52.232-5, and FAR 52.232-27 don’t override the Prompt Payment Act — they implement it. The Act is the law. FAR is the instruction manual that carries it out. What this means in real-world federal construction:If a government office delays your payment, you don’t beg, argue, or escalate emotionally. You point to the Act and the dates. And because no federal employee wants interest charges hitting their budget, the law forces them to prioritize your invoice. The Prompt Payment Act protects your cash flow, keeps agencies accountable, and stops your business from being treated like a bank. If you’re doing federal construction — or thinking about getting into it — you must understand this law. It keeps your company alive. KEY TAKEAWAYS - The government is legally required to pay you on time. - 14 days for progress payments; 30 days for final payments. - Late payments = automatic, mandatory interest. - FAR clauses implement the Act and do not contradict it. - The Act gives you leverage when payments are delayed. - It protects your cash flow and keeps your business stable. - Every federal builder needs to understand this law to operate safely.