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Faster Payments for Small Construction Businesses on Contract Changes.

New rules aim to provide small construction businesses with quicker payments when the government changes their contract terms. This ensures businesses receive at least half of the estimated additional costs upfront, helping them maintain cash flow and avoid project delays. The act also ensures these funds flow down to subcontractors who incurred the increased costs.
Key points
Small construction businesses will receive at least 50% of estimated additional costs when government changes contract terms.
These payments are designed to help businesses cover unexpected expenses and ensure project continuity.
Funds from these payments must be passed down to subcontractors who incurred the increased costs.
The provisions will be implemented by October 1, 2027, at the latest.
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Introduced
Citizen Poll
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Additional Information
Print number: 119_HR_4615
Sponsor: Rep. Stauber, Pete [R-MN-8]
Process start date: 2025-07-22