The Prompt Payment Final Rule (formerly OMB Circular A-125, “Prompt Payment”) requires Executive departments and agencies to pay commercial obligations within certain time periods and to pay interest penalties when payments are late. On June 17, 1998, the Office of Management and Budget (OMB) requested comment on proposed revisions to the Circular. The Circular was revised to reflect the increased use of electronic commerce in the Federal government and the private sector and to reflect the requirements of the Debt Collection Improvement Act (DCIA) of 1996 . Comments were received from 21 entities, including 15 Federal agencies, five vendors, and one university. After considering the comments received, OMB issued final rule 5 CFR 1315 on September 29, 1999.
With this said, do you, the Contractor, understand what this means to you? Pay close attention to two items. First, if a Corporation is attempting to pay you by check they are holding your funds in an untimely manner in an attempt to skew books and keep monies on their books.
In this, when you figure that if several million dollars are scheduled to transfer out on a given day, why not extend that by the time it takes to mail and then clear deposit!
Second, whom determines when you can issue an Invoice? Make no mistake the stakes are HIGH! The East Tennessee Property Preservation Guild (ETNPPG) ensures your voice as a Contractor! We are the only ones whom are defending the rights going forward.
Stay tuned for the copies of our correspondence bewteen PKMG, HUD and us. Also, tomorrow’s edition will include an issue of How To Lien Properties not paid for!
