Prompt Payment Compliance

 

Description

NDOT’s contract with the Contractor contains a provision requiring that prompt payments be made to all Subcontractors.  There is a special provision, effective December 2022, that supersedes Paragraph 7 of Section 108.01 of the Nebraska Standard Specifications for Highway Construction, 2017 Edition (SSHC) containing specific requirements regarding prompt payment and requiring the inclusion of language that makes up a “Prompt Payment Clause” when subletting work to subcontractors and lower-tier subcontractors. 

NDOT reviews the prompt payment clause in subcontracts as a part of the subcontract approval process to ensure that it meets the requirements of the SSHC.   

Subcontracts that do not contain complete language, contain inaccurate language or contain clauses conflicting with the Prompt Payment Clause will not be approved.

 

Applicability

Prompt payment language is in the SSHC; consequently, it applies to all projects and all contractors and subcontractors both DBE and non-DBE subcontractors at any tier.

 

 

Links to Additional Information

Prompt Payment Specification - The special provision which supersedes the prompt payment provisions in the SSHC.

Federal Requirements - The federal requirements regarding prompt payment.

Payments - Information regarding payments, withholding payment, reporting prompt payment violations, overpayments, retainage, breach of contract.

Prompt Payment Reporting System - Information about the reporting system used by the NDOT for active monitoring of prompt payments.