While most contracts contain the prompt payment clauses prescribed by FAR 32.9 each government activity proceeds at its own speed. Time for reviewing invoices can vary widely and reasons for rejecting invoicing can challenge the imagination. Client A may review and approve invoices in 14 days while Client B may take 60 days. The Prompt Payment Act requires government to pay interest on late payments at a rate set every six months but the current 4.25% rate may offer little help on a 90 day receivable. Consequently, contractors need to work with their clients up front to ensure invoices are processed quickly. The terms of the contract need to be well known and requirements of 52.232-25, Prompt Payment memorized.

If invoicing is based on delivery, attach evidence of the government’s acceptance. If invoicing is based on percent of completion, ensure both parties are in agreement about what the percentage is. Even a 1% disagreement will result in delay. When submitting a cost reimburseable invoice, be prepared to have every backup document clearly marked, coded and attached to the invoice such as timecards, expense reports, subcontractors’ invoices, materials reports, etc. If it is the client’s practice to request only an invoice, have back up documents handy. Have the invoice formats and required information established well in advance – contractor kick-off meeting should address invoice requirements or a short pre-invoice meeting is recommended. At these meetings, find out if bi-weekly or even weekly billings are allowed rather than the customary 30 days. Strive to work on the basis of electronic invoicing and electronic payments to save the several "in the mail" days.

{TAG_FORM_TITLE}