Small Business Payment for Performance Act of 2026

Interim payments for small contractors

If enacted, a small business awarded a federal construction contract would be able to submit a timely equitable adjustment request when a contracting officer directs a change without the business's agreement. Upon a qualifying request, the agency would have to pay at least 50 percent of the business's stated estimate of added costs as an interim partial payment. That interim payment would not finalize or settle the equitable adjustment. A small business that receives an interim payment would have to pass the portions attributable to first‑tier subcontractors to those subcontractors, and first‑tier subcontractors would pass appropriate portions to lower tiers. The Small Business Administration Administrator would have to issue implementing rules under the Administrative Procedure Act within 90 days after enactment.