Is the date of prompt payment based on when the check is dated and mailed, or when the contractor receives the check?
2 replies
Dec 9, 2019
It depends. For the owner, the prompt payment date is triggered by the completion of the project, and for the subcontractor, the payment date is triggered by the general's receipt of payment.
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Dec 9, 2019
Hi Mr. Lovett:
Thanks for your reply.
For clarification, on public projects a "progress payment" is due after 30 days after receipt of an undisputed payment request. After 30 days, interest on the progress payment would apply. In this scenario, is the payment date when the check is mailed out or when the contractor receives the check by mail. The difference is typically 2-3 days.
Thanks again in advance.
Marvin