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 Virginia, prompt payment statutes are designed to ensure that contractors and subcontractors are paid in a timely manner for their work on construction projects. The Virginia Prompt Payment Act applies to both public and private construction projects. For public projects, the Act requires that a public body must pay the prime contractor within 30 days of receipt of an invoice, and the prime contractor must pay its subcontractors within 7 days of receiving payment from the public body, provided the subcontractor's work has been satisfactorily completed and no dispute exists. For private projects, the Act mandates that the owner pay the general contractor within 45 days of receipt of an invoice, and the general contractor must pay subcontractors within 7 days of receipt of payment from the owner, under the same conditions. If payments are not made within these time frames, interest may accrue on the unpaid amount at a rate specified by the Act. The federal Prompt Payment Act similarly requires timely payment to contractors and subcontractors on federal construction projects, with interest penalties for late payments.