According to the prompt pay act, what is the minimum monthly interest rate for late payments to subcontractors?

The prompt pay act establishes standards for timely payment to subcontractors, and it specifies interest rates to incentivize promptness in payments. The minimum monthly interest rate for late payments to subcontractors is set at 1.5%. This rate serves to promote fairness in the payment process and aligns with the intent of the prompt pay act to ensure that subcontractors are compensated in a timely manner for their work. The inclusion of a specific interest rate not only encourages timely payment but also helps subcontractors manage cash flow and address any potential funding gaps caused by delays in payment.