Common use of Prompt Pay Clause in Contracts

Prompt Pay. The Acquisition Provider shall pay the subcontractor for work performed within 10 days after the Acquisition Provider receives payment for the work performed by the subcontractor. This requirement also applies to all sub-tier subcontractors and must be incorporated into all subcontracts. Failure to comply with the 10-day requirement may cause the State to withhold all payments that have or may become due, and the State may suspend the work until the subcontractor is paid.