Rep. Stauber (R-MN) Reintroduces the Small Business Payment Performance Act

On July 23, 2025, Rep. Stauber (MN-08) reintroduced the Small Business Payment for Performance Act, which will require fair treatment of small construction contractors by federal agencies during the procurement process. Of this legislation, Congressman Stauber stated, “Small businesses on Main Street America are the economic engine of our economy, and it's important that the federal government supports their ability to succeed when fulfilling government contracts. I’m proud to reintroduce the Small Business Payment for Performance Act, which will hold the federal government accountable for any changes to contracts awarded to small businesses. This important legislation will protect small businesses from unexpected financial burdens, incentivizing more small businesses to compete for federal contracts that will drive economic growth in their respective communities.”

“The American Subcontractors Association applauds Rep. Stauber in advancing this important legislation, which will effectuate change order reform for all construction contractors by ensuring they receive timely payments for their completed work.” - American Subcontractors Association

In terms of background, changes to a contract, commonly known as “change orders,” inevitably occur on construction projects. The government may issue change orders without the contractor’s consent and often fails to abide by change order rules, like formalizing change orders in writing. Specifically, this legislation will do the following:

• Allow small businesses to request an equitable adjustment to the contracting officer if the contracting officer places a change order without the agreement of the small business.
• Require the federal government to pay at least 50% of the cost from the change order upon receipt of the equitable adjustment.