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ASA Supports the Small Business Payment for Performance Act of 2023

The American Subcontractors Association (ASA) commends Construction Procurement Caucus (CPC) Co-Chairs, Stauber (R-MN) and Peters (D-CA) as well as Reps. Veasey (D-TX) and Fitzpatrick (R-PA) for the introduction of the ‘‘Small Business Payment for Performance Act of 2023.’’ This critical legislation lessens the considerable financing burden placed on small construction businesses when federal project owners make unilateral changes to construction contracts. By requiring federal project owners to make interim partial payments on owner-directed change orders, small construction businesses receive necessary and timely cash flow for performance.  As the construction industry continues to face uncertain and variable market conditions, including supply disruptions and increasing materials prices, all construction businesses, but particularly small construction businesses, need federal payment practices that are not unfairly burdensome.  Passage of this legislation will ensure that small construction businesses performing on federal contracts have confidence that equitable payment practices exist for owner-directed change orders. Thank you CPC Co-Chairs Stauber and Peters and Reps. Veasey and Fitzpatrick for recognizing this significant issue and introducing this important procurement reform.

Click here to view the press release from Rep. Stauber.