This article first appeared in the 200111
issue of BD+C.
The Federal Register has published a proposal to strengthen prompt pay provisions of the Federal Acquisition Regulation (FAR). The proposal would ensure that subcontractors receive their progress payments in full on government projects for work properly performed before additional disbursements are made to the prime contractor.
Instances have been reported in which a prime contractor reports to the government that "payment" has been made to the subcontractor, but instead the contractor only pays some of the funds owed to the subcontractor. The FAR does not specify that "full payment" must be made. This would be changed.
The deadline for public comment is Dec. 17.
