A payment from the government of a substantial amount owed
to us was delayed because it was sent to the wrong remittance address.
Are we entitled to receive the interest penalty on this late payment?
Answer: : Possibly. The
overwhelming majority of payment delays result in errors made by the
seller. Your first step is to be certain your company is not responsible
for the fact that government’s payment was misdirected. Also, remember
that under the Federal Prompt Pay Act, payment is considered made the
day payment is issued, regardless of when it is received by the seller.
Also, remember that the calculation of interest assumes the government
has received a proper invoice. Until that document is delivered, the
clock does not start on payment. When all is said and done, we are not
sure if you will receive the interest you are seeking under this Federal
law. |