§4505 Payments for commercial products and commercial services

Summary

Agencies may use the same payment terms you see in private business if the agency head decides those terms are normal and are best for the federal government. The agency must get good security for any payments. If the security is a lien (a legal claim) for the government, that lien has priority over all others and starts on the first payment without any filing, notice, or other action by the government. Advance payments can include up to 15 percent of the contract price before any work begins. The agency head may skip rules in sections 4503 and 4504 when those rules would conflict with the normal commercial terms used here.