Under the Prompt Payment clause, are contractors entitled to payment for accepted partial deliveries?

The Prompt Payment clause in federal contracting ensures that contractors receive timely payments for the goods and services provided, including accepted partial deliveries. If contractors make these partial deliveries in accordance with the terms and specifications outlined in the contract, they are indeed entitled to payment for those accepted portions. This fundamental principle encourages prompt performance by allowing contractors to receive compensation as they fulfill contractual obligations progressively, rather than waiting for full completion of the contract.

Furthermore, this entitlement aligns with the overall goals of the Prompt Payment Act, which aims to improve cash flow for businesses engaged with the government. It is critical that the partial deliveries meet the quality and quantity stipulated in the contract for the contractor to receive payment, reinforcing adherence to the agreed-upon terms. This approach balances the needs of both the government and the contractors, fostering a productive working relationship while ensuring compliance with contractual standards.