Prompt payment statutes are laws that require the payment of contractors and subcontractors within a certain period of time, and prescribe interest and penalties for late payments. In some states these laws only apply to public works construction projects that are funded by the government—and sometimes only to public works projects over a certain dollar amount. There is also a federal Prompt Payment Act for federal construction projects.

In Georgia, prompt payment statutes are designed to ensure that contractors and subcontractors working on construction projects are paid in a timely manner. Under Georgia law, specifically O.C.G.A. § 13-11-1 et seq., these statutes apply to both private and public construction projects. For public works projects, the law requires that prime contractors must be paid by the public entity within 15 days of receipt of any undisputed request for payment. Subcontractors must then be paid within 10 days after the contractor receives payment. For private projects, the payment terms are governed by the contract, but if a payment is late, the contractor or subcontractor is entitled to interest beginning 15 days after the work is completed or the materials are furnished. The interest rate is specified in the statute. Additionally, the federal Prompt Payment Act applies to federal construction projects, requiring federal agencies to pay contractors within a certain time frame and to include prompt payment terms in their contracts with contractors. Penalties and interest may be imposed for late payments under this federal law as well.