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 Maryland, prompt payment statutes are designed to ensure that contractors and subcontractors are paid in a timely manner for their work on construction projects. Maryland's prompt payment laws apply to both public and private construction projects. Under Maryland law, specifically the Maryland Prompt Payment Act, contractors on public projects must be paid within 30 days after the government body receives an undisputed invoice, and subcontractors must be paid within 7 days after the contractor receives payment. For private projects, the payment terms are typically outlined in the contract, but the law requires payment to subcontractors within 7 days after the contractor receives payment, provided the subcontractor's work has been accepted and there is no dispute over the invoice. If payments are delayed, interest may accrue on the unpaid amount at a rate specified by the statute. The Maryland Little Miller Act also provides payment protections for subcontractors and suppliers on public projects. These laws are in place to protect the cash flow to businesses that perform construction work, ensuring they are not financially disadvantaged by delayed payments.