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 New York, prompt payment statutes are designed to ensure that contractors and subcontractors are paid in a timely manner for their work on construction projects. New York's Prompt Payment Act applies to both private and public construction projects. For public projects, the law requires state agencies to pay contractors within 30 days of receiving an invoice, and contractors must pay their subcontractors within seven days of receiving payment from the state. For private projects, the law mandates that payment from the owner to the contractor must be made within 30 days of the contractor's request for payment, unless otherwise agreed upon in the contract. Subcontractors must then be paid within seven days of the contractor receiving payment. If payments are late, interest penalties may be imposed. The specific rates and terms are outlined in the New York State Finance Law for public projects and the General Business Law for private projects. These statutes are intended to protect the cash flow to businesses in the construction industry, ensuring that they are not financially disadvantaged by delayed payments.