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 South Carolina, prompt payment statutes are designed to ensure that contractors and subcontractors working on construction projects are paid in a timely manner. These laws apply to both public and private construction projects. Under the South Carolina Code, specifically sections 29-6-10 to 29-6-50, contractors and subcontractors must be paid within a specified time frame after submitting a proper invoice. For public projects, the payment due from the public entity to the prime contractor is typically required within 21 days after receipt of the invoice, and the prime contractor must pay its subcontractors within 7 days of receiving payment. If payment is not made within these time frames, interest penalties may apply. The interest rate is set by statute and is subject to change. It's important to note that these statutes may have specific requirements and exceptions, and the application of these laws can vary depending on the details of the contract and the nature of the project. Additionally, for federal construction projects, the Federal Prompt Payment Act applies, which also mandates timely payment to contractors and subcontractors, with its own set of deadlines and penalties for late payment.