Understanding Prompt Payments Laws & Regulations in All 50 States (Part 1)
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Prompt Payment Compliance
Prompt payment laws ensure that prime and subcontractors are paid on time based on state regulations and agreed-upon terms. Infotech works with state DOTs and contractors to support prompt payment compliance and verification with digital solutions. Learn more about prompt payment laws and regulations and our work with transportation departments below.
LEARN MORE Understanding Prompt Payments Laws & Regulations
Prompt payment laws and regulations were created to ensure timely payment for work completed and materials supplied. These laws typically require that payments be made within a specified period after an invoice is submitted, often 30 days, and establish procedures for resolving payment disputes.
These laws aim to foster a more equitable and efficient payment process for contractors and subcontractors. DBEs often rely on prompt payment to maintain cash flow, hire workers, and invest in new projects to sustain work and reduce disparities. Many states struggle with prompt payment compliance and face penalties from FHWA and other regulatory agencies. Proactive monitoring of payments to contractors can help state DOTs avoid the ire of federal agencies while also improving the reporting and verification processes for contractors.
Signet: A Prompt Payment Verification Solution
Signet is a digital solution that empowers contractors to remain easily compliant with prompt pay laws via an intuitive verification platform. Features like a high-level Contract Dashboard, the ability to search and filter by contract name/status, and role-based access make it easier for contractors to track, record, and verify payments. Once verified, Signet data can be imported into AASHTOWare Project Civil Rights & Labor™.
Currently used by the Ohio and Missouri DOTs, Signet users report:
40% increase in subcontractor payment compliance
70% less time spent by prime contractors recording payments
98% user satisfaction
With 800+ users, Signet has recorded and verified over 31,000 payments to date totaling ~$1.5 billion in annual payments.
LEARN MOREWith 800+ users, Signet has recorded and verified over 31,000 payments to date totaling ~$1.5 billion in annual payments.
LEARN MOREReady to start streamlining prompt payment compliance in your state?
Contact us for details on pricing, implementation, and how we can adapt Signet to meet your state’s specific needs.
