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if you work in construction you might have heard about prompt payment legislation by now and how yesterdays news is taking the industry by storm but just in case you havent heard and are wondering what is prompt payment were here to break it down for you its essentially a law that ensures contractors and subcontractors are paid in a timely manner for work that is completed on time and to specifications if youre thinking hmm wasnt this standard practice already the answer is unfortunately not current construction law has this strangely accepted quirk where people can get away without paying their bills on time and yet contractors are expected to keep working this means contractors are basically financing projects out of their own pocket for months at a time how can a business be expected to bid on the next job pay their own employees or carry inventory without knowing when the books will be balanced again thats a lot of risk prompt payment legislation exists in many other parts