Managing Prompt Payment Policy

Navigation: Reference Manual > The PRISM Modules > Contracts > Contract Spend >

•Determine if a prime payment to a sub (sub payment) was made within the guidelines of the policy

•Alert the jurisdiction (contract specialist) that the payment violated the prompt payment policy

Term	Definition
Elapsed Days	The number of days that has elapsed between the time the prime has been paid and the sub has been paid
Non-Payment Report	When a prime reports that no payment activity has occurred during a reporting period
Prime Payment	A payment made from a jurisdiction to a prime contractor
Sub Payment	A payment made from the prime to the subcontractor
Prompt Payment Policy Violation	When it has been determined that elapsed days has exceeded the number of days configured in the prompt payment policy

1.The prompt payment policy violation is determined based on the sub payment report. The sub payment recorded during this report determines the end of the elapsed time. Conversely, the prime payment determines the beginning of the elapsed time.

2.A jurisdiction may have more than one prompt payment policy configured. However, only one policy may be assigned to a contract at a time.

3.The prompt payment policy functionality requires the prime contractor to submit monthly payment reports and the subcontractor to acknowledge receiving payments from the prime contractor.

4.A jurisdiction must subscribe to this feature. See your PRISM professional to learn more about subscribing to this feature.

This Quick Filter is available when Prompt Payment Policy is being utilized by a jurisdiction. In this example, there are 5 Prompt Payment Policy violations among active contracts.

A new column named 'Prompt Payment Policy Name' is available for the contract list. It will show the name of any prompt payment policies that have been assigned to contracts. When clicking on the link of the policy name, the number of violations for that contract will show.

Step 2: Assign a Prompt Payment Policy to a Contract - On the Contract Info tab, identify and select the desired prompt payment policy from the labeled drop-down list (once)

Step 3: The jurisdiction routinely records contract prime payments in PRISM (via API, Import, or the user interface). The prompt payment policy elapsed days start to accumulate.

Step 4: The prime contractor, during periodic compliance reporting, identifies which prime payment was utilized to pay subcontractors. The total prompt payment policy elapsed days are calculated as the difference between the prime payment date and the sub payment date. The contract specialist and the prime contractor are notified via email.

Step 5: The subcontractor acknowledges receiving payments and identifies when the payment was received. This date is used to reconcile any false positive (warnings) prompt payment policy violations.