Last Updated January 12, 1998.

Federal Government Contractors are entitled to recover interest on contract claims and late payments as provided in several statutes, regulations and contract clauses. These include the Contract Disputes Act of 1978, the Prompt Payment Act, the Disputes Clause and other contract clauses and regulatory provisions. Interest will accrue from the date the claim is received by the government to the date the government makes the payment. The applicable interest rate changes every six months, and is set by the Secretary of the Treasury. Contractors are entitled to recover simple interest at the rate applicable for each six month the claim or invoice is outstanding. The applicable interest rates issued by the Secretary of the Treasury since 1971 are listed below. These rates are a guide. You should always check the rates yourself.

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