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 Kansas, prompt payment statutes are designed to ensure that contractors and subcontractors are paid in a timely manner for their work on construction projects. Kansas Statutes Annotated (K.S.A.) 16-1801 et seq. govern the prompt payment for construction contracts. These statutes apply to both private and public construction projects. For public projects, the law requires that a government entity must pay the prime contractor within 30 days after receipt of a payment request, and the prime contractor must pay its subcontractors within 7 days of receiving payment. For private projects, the owner must pay the contractor within 30 days after the contractor's request for payment, and the contractor must pay the subcontractor within 7 days of receipt of payment. If payment is not made within these time frames, interest penalties may apply. The interest rate for late payments is specified in the statute and is subject to change. It's important to note that these regulations can be complex and may have exceptions or additional requirements, so consultation with an attorney for specific situations is advisable.