FAR 32.904—Determining payment due dates.
Plain-English Summary
FAR 32.904 explains how to determine the payment due date for invoices and other payment requests, and it is the core timing rule used to decide when the Government must pay and when interest penalties may start to accrue under the Prompt Payment framework. It covers the general requirement that agency procedures give contracting officers enough time to perform administrative duties before setting due dates, the standard due-date rule for invoice payments, and special timing rules for architect-engineer contracts under the Payments Under Fixed-Price Architect-Engineer Contracts clause. It also addresses constructive acceptance and constructive approval for interest-penalty purposes, including the default 7-day constructive period, when actual acceptance or approval controls instead, and when the contracting officer may extend the constructive period. The section further covers final invoices tied to contract settlement actions, contracts that do not require invoices, and the rule that if the billing office fails to date-stamp receipt, the invoice date may control the due date. In practice, this section matters because it determines when payment is legally due, when late-payment interest can be owed, and how agencies must manage receipt, acceptance, approval, and documentation to avoid avoidable payment delays and disputes.
Key Rules
Agency procedures must allow time
When setting due dates, agency procedures must give full consideration to the time Government officials reasonably need to perform administrative responsibilities under the contract. This prevents due dates from being set so aggressively that the Government cannot properly inspect, accept, approve, or process payment.
Standard invoice due date
Unless an exception applies, the payment due date is the later of 30 days after the designated billing office receives a proper invoice or 30 days after Government acceptance of the supplies or services. This means both invoice receipt and acceptance matter, and payment is not due until the later of the two dates.
Constructive acceptance for interest
For interest-penalty purposes only, Government acceptance is generally deemed to occur on the 7th day after delivery or performance if there is no disagreement over quantity, quality, or compliance. This constructive acceptance rule does not force the Government to accept prematurely; it only establishes a timing rule for interest calculations.
Actual acceptance controls if earlier
If the Government actually accepts the supplies or services within the constructive acceptance period, the interest-penalty calculation must use the actual acceptance date. The same principle applies where actual approval occurs within the constructive approval period for architect-engineer progress payments.
Longer constructive periods allowed
For non-commercial items and services, the contracting officer may specify a longer constructive acceptance period if needed to allow a reasonable opportunity to inspect, test, or evaluate performance. The justification must be documented in the contract file, and extended periods may not be used as a routine practice.
Final invoices tied to settlement
When a final invoice is subject to contract settlement actions, acceptance is deemed to occur on the effective date of the settlement. This rule aligns payment timing with the completion of release-of-claims or similar settlement actions.
No invoice, due date must be specified
If the contract does not require submission of an invoice for payment, such as periodic lease payments, the contracting officer must specify the due date in the contract. The payment clock cannot run without a contractually defined due date in these cases.
Missing receipt date stamp rule
If the designated billing office does not annotate the invoice with the actual date of receipt when it is received, the due date becomes 30 days after the contractor’s invoice date, provided the invoice is proper and there is no disagreement over quantity, quality, or compliance. This rule protects contractors from agency processing failures.
Architect-engineer special rules
For fixed-price architect-engineer contracts under FAR 52.232-10, the due date for completed work or services is the later of 30 days after receipt of a proper invoice or 30 days after Government acceptance, while progress payments are due 30 days after Government approval of contractor estimates. Constructive acceptance and constructive approval are both generally deemed to occur on day 7 for interest purposes, subject to the same limitations and possible longer periods for proper inspection or evaluation.
Constructive approval conditions
For architect-engineer progress payments, constructive approval applies only when the billing office receives a proper payment request and there is no disagreement over quantity, quality, compliance, or the requested progress payment amount. Like constructive acceptance, it does not require the Government to approve before completing its responsibilities.
Responsibilities
Contracting Officer
Ensure agency procedures and contract terms allow enough time for Government administrative actions; specify due dates when no invoice is required; document any justification for extending constructive acceptance or approval periods beyond 7 days; and include appropriate due-date language in solicitations and contracts, especially for architect-engineer and nonstandard payment arrangements.
Designated Billing Office
Receive proper invoices or payment requests, annotate them with the actual date of receipt at the time of receipt, and forward them for processing. If the office fails to date-stamp receipt, the contractor may gain a due-date calculation based on the invoice date.
Government Acceptance/Inspection Officials
Inspect, test, and accept supplies or services within the required time; resolve quantity, quality, and compliance issues; and ensure acceptance dates are properly recorded because those dates affect payment due dates and interest calculations.
Government Approving Officials
Review and approve contractor estimates or progress payment requests for architect-engineer contracts, and do so in time to avoid unnecessary interest penalties. They must also ensure any disagreements are resolved and approvals are documented.
Contractor
Submit a proper invoice or payment request, perform in accordance with contract terms, and understand that payment timing depends on both invoice receipt and acceptance/approval. Contractors should also track receipt dates, acceptance dates, and any settlement actions to verify whether interest is owed.
Agency
Maintain procedures that support timely administrative processing, proper receipt dating, inspection, acceptance, and approval. Agencies must also avoid routine use of extended constructive periods and ensure contract files support any extension.
Practical Implications
Payment timing is not just about invoice submission; it also depends on acceptance or approval, so delays in inspection or documentation can delay the due date or trigger interest issues.
Contractors should confirm that the billing office date-stamped the invoice or payment request, because a missing receipt date can shift the due date to the invoice date and affect interest calculations.
Contracting officers should not treat the 7-day constructive acceptance or approval period as a default scheduling tool for every contract; extensions must be justified and documented, especially for non-commercial items.
For architect-engineer contracts, progress payments and completed-work payments follow different timing rules, so the contract type and payment clause matter a great deal.
Disagreements over quantity, quality, compliance, or requested progress payment amount stop the constructive acceptance/approval clock from operating, so unresolved issues can change both payment timing and interest exposure.
Official Regulatory Text
(a) General. Agency procedures must ensure that, when specifying due dates, contracting officers give full consideration to the time reasonably required by Government officials to fulfill their administrative responsibilities under the contract. (b) Payment due dates . Except as prescribed in paragraphs (c) through (f) of this section, or as authorized in 32.908 (a)(2) or (c)(2), the due date for making an invoice payment is as follows: (1) The later of the following two events: (i) The 30 thday after the designated billing office receives a proper invoice from the contractor (except as provided in paragraph (b)(3) of this section). (ii) The 30 thday after Government acceptance of supplies delivered or services performed. (A) For a final invoice, when the payment amount is subject to contract settlement actions, acceptance is deemed to occur on the effective date of the contract settlement. (B) For the sole purpose of computing an interest penalty that might be due the contractor- (1) Government acceptance is deemed to occur constructively on the 7 thday after the contractor delivers supplies or performs services in accordance with the terms and conditions of the contract, unless there is a disagreement over quantity, quality, or contractor compliance with a contract requirement; (2) If actual acceptance occurs within the constructive acceptance period, the Government must base the determination of an interest penalty on the actual date of acceptance; (3) The constructive acceptance requirement does not compel Government officials to accept supplies or services, perform contract administration functions, or make payment prior to fulfilling their responsibilities; and (4) Except for a contract for the purchase of a commercial product or commercial service, including a brand-name commercial product for authorized resale (e.g.,commissary items), the contracting officer may specify a longer period for constructive acceptance in the solicitation and resulting contract, if required to afford the Government a reasonable opportunity to inspect and test the supplies furnished or to evaluate the services performed. The contracting officer must document in the contract file the justification for extending the constructive acceptance period beyond 7 days. Extended acceptance periods must not be a routine agency practice and must be used only when necessary to permit proper Government inspection and testing of the supplies delivered or services performed. (2) If the contract does not require submission of an invoice for payment (e.g.,periodic lease payments), the contracting officer must specify the due date in the contract. (3) If the designated billing office fails to annotate the invoice with the actual date of receipt at the time of receipt, the invoice payment due date is the 30 thday after the date of the contractor's invoice, provided the designated billing office receives a proper invoice and there is no disagreement over quantity, quality, or contractor compliance with contract requirements. (c) Architect-engineer contracts. (1) The due date for making payments on contracts that contain the clause at 52.232-10 , Payments Under Fixed-Price Architect-Engineer Contracts, is as follows: (i) The due date for work or services completed by the contractor is the later of the following two events: (A) The 30 thday after the designated billing office receives a proper invoice from the contractor. (B) The 30 thday after Government acceptance of the work or services completed by the contractor. (1) For a final invoice, when the payment amount is subject to contract settlement actions ( e.g., release of claims), acceptance is deemed to occur on the effective date of the settlement. (2) For the sole purpose of computing an interest penalty that might be due the contractor, Government acceptance is deemed to occur constructively on the 7 thday after the contractor completes the work or services in accordance with the terms and conditions of the contract (see also paragraph (c)(2) of this section). If actual acceptance occurs within the constructive acceptance period, the Government must base the determination of an interest penalty on the actual date of acceptance. (ii) The due date for progress payments is the 30 thday after Government approval of contractor estimates of work or services accomplished. For the sole purpose of computing an interest penalty that might be due the contractor- (A) Government approval is deemed to occur constructively on the 7 thday after the designated billing office receives the contractor estimates (see also paragraph (c)(2) of this section). (B) If actual approval occurs within the constructive approval period, the Government must base the determination of an interest penalty on the actual date of approval. (iii) If the designated billing office fails to annotate the invoice or payment request with the actual date of receipt at the time of receipt, the payment due date is the 30 thday after the date of the contractor’s invoice or payment request, provided the designated billing office receives a proper invoice or payment request and there is no disagreement over quantity, quality, or contractor compliance with contract requirements. (2) The constructive acceptance and constructive approval requirements described in paragraphs (c)(1)(i) and (ii) of this section are conditioned upon receipt of a proper payment request and no disagreement over quantity, quality, contractor compliance with contract requirements, or the requested progress payment amount. These requirements do not compel Government officials to accept work or services, approve contractor estimates, perform contract administration functions, or make payment prior to fulfilling their responsibilities. The contracting officer may specify a longer period for constructive acceptance or constructive approval, if required to afford the Government a reasonable opportunity to inspect and test the supplies furnished or to evaluate the services performed. The contracting officer must document in the contract file the justification for extending the constructive acceptance or approval period beyond 7 days. (d) Construction contracts. (1) The due date for making payments on construction contracts is as follows: (i) The due date for making progress payments based on contracting officer approval of the estimated amount and value of work or services performed, including payments for reaching milestones in any project, is 14 days after the designated billing office receives a proper payment request. (A) If the designated billing office fails to annotate the payment request with the actual date of receipt at the time of receipt, the payment due date is the 14 thday after the date of the contractor’s payment request, provided the designated billing office receives a proper payment request and there is no disagreement over quantity, quality, or contractor compliance with contract requirements. (B) The contracting officer may specify a longer period in the solicitation and resulting contract if required to afford the Government a reasonable opportunity to adequately inspect the work and to determine the adequacy of the contractor’s performance under the contract. The contracting officer must document in the contract file the justification for extending the due date beyond 14 days. (C) The contracting officer must not approve progress payment requests unless the certification and substantiation of amounts requested are provided as required by the clause at 52.232-5 , Payments Under Fixed-Price Construction Contracts. (ii) The due date for payment of any amounts retained by the contracting officer in accordance with the clause at 52.232-5 , Payments Under Fixed-Price Construction Contracts, will be as specified in the contract or, if not specified, 30 days after approval by the contracting officer for release to the contractor. The contracting officer must base the release of retained amounts on the contracting officer’s determination that satisfactory progress has been made. (iii) The due date for final payments based on completion and acceptance of all work (including any retained amounts), and payments for partial deliveries that have been accepted by the Government ( e.g., each separate building, public work, or other division of the contract for which the price is stated separately in the contract) is as follows: (A) The later of the following two events: (1) The 30 thday after the designated billing office receives a proper invoice from the contractor. (2) The 30 thday after Government acceptance of the work or services completed by the contractor. For a final invoice, when the payment amount is subject to contract settlement actions ( e.g., release of contractor claims), acceptance is deemed to occur on the effective date of the contract settlement. (B) If the designated billing office fails to annotate the invoice with the actual date of receipt at the time of receipt, the invoice payment due date is the 30 thday after the date of the contractor’s invoice, provided the designated billing office receives a proper invoice and there is no disagreement over quantity, quality, or contractor compliance with contract requirements. (2) For the sole purpose of computing an interest penalty that might be due the contractor for payments described in paragraph (d)(1)(iii) of this section- (i) Government acceptance or approval is deemed to occur constructively on the 7 thday after the contractor completes the work or services in accordance with the terms and conditions of the contract, unless there is a disagreement over quantity, quality, contractor compliance with a contract requirement, or the requested amount; (ii) If actual acceptance occurs within the constructive acceptance period, the Government must base the determination of an interest penalty on the actual date of acceptance; (iii) The constructive acceptance requirement does not compel Government officials to accept work or services, approve contractor estimates, perform contract administration functions, or make payment prior to fulfilling their responsibilities; and (iv) The contracting officer may specify a longer period for constructive acceptance or constructive approval in the solicitation and resulting contract, if required to afford the Government a reasonable opportunity to adequately inspect the work and to determine the adequacy of the contractor’s performance under the contract. The contracting officer must document in the contract file the justification for extending the constructive acceptance or approval beyond 7 days. (3) Construction contracts contain special provisions concerning contractor payments to subcontractors, along with special contractor certification requirements. The Office of Management and Budget has determined that these certifications must not be construed as final acceptance of the subcontractor’s performance. The certification in 52.232-5 (c) implements this determination; however, certificates are still acceptable if the contractor deletes paragraph (c)(4) of 52.232-5 from the certificate. (4) (i) Paragraph (d) of the clause at 52.232-5 , Payments under Fixed-Price Construction Contracts, and paragraph (e)(6) of the clause at 52.232-27 , Prompt Payment for Construction Contracts, provide for the contractor to pay interest on unearned amounts in certain circumstances. The Government must recover this interest from subsequent payments to the contractor. Therefore, contracting officers normally must make no demand for payment. Contracting officers must- (A) Compute the amount in accordance with the clause; (B) Provide the contractor with a final decision; and (C) Notify the payment office of the amount to be withheld. (ii) The payment office is responsible for making the deduction of interest. Amounts collected in accordance with these provisions revert to the United States Treasury. (e) Cost-reimbursement contracts for services. For purposes of computing late payment interest penalties that may apply, the due date for making interim payments on cost-reimbursement contracts for services is 30 days after the date of receipt of a proper invoice. (f) Food and specified items . If the items delivered are: Payment must be made as close as possible to, but not later than: (1) Meat or meat food products . As defined in section 2(a)(3) of the Packers and Stockyard Act of 1921 ( 7 U.S.C. 182(3) ), and as further defined in Public Law98-181, including any edible fresh or frozen poultry meat, any perishable poultry meat food product, fresh eggs, and any perishable egg product. 7th day after product delivery. (2) Fresh or frozen fish . As defined in section 204(3) of the Fish and Seafood Promotion Act of 1986 ( 16 U.S.C. 4003(3) ). 7th day after product delivery. (3) Perishable agricultural commodities . As defined in section 1(4) of the Perishable Agricultural Commodities Act of 1930 ( 7 U.S.C. 499a (4)). 10th day after product delivery, unless another date is specified in the contract. (4) Dairy products . As defined in section 111(e) of the Dairy Production Stabilization Act of 1983 ( 7 U.S.C. 4502(e) ), edible fats or oils, and food products prepared from edible fats or oils. Liquid milk, cheese, certain processed cheese products, butter, yogurt, ice cream, mayonnaise, salad dressings, and other similar products fall within this classification. Nothing in the Act limits this classification to refrigerated products. If questions arise regarding the proper classification of a specific product, the contracting officer must follow prevailing industry practices in specifying a contract payment due date. The burden of proof that a classification of a specific product is, in fact, prevailing industry practice is upon the contractor making the representation. 10th day after a proper invoice has been received. (g) Multiple payment due dates . Contracting officers may encourage, but not require, contractors to submit separate invoices for products with different payment due dates under the same contract or order. When an invoice contains items with different payment due dates ( i.e., a mixed invoice), the payment office will, subject to agency policy- (1) Pay the entire invoice on the earliest due date; or (2) Split invoice payments, making payments by the applicable due dates.