What is required by "prompt payment" legislation in Virginia?

In Virginia, "prompt payment" legislation mandates that contractors and subcontractors receive payment within a specific timeframe after submitting their invoices. This requirement is crucial as it helps ensure that those who perform work or provide services are compensated in a timely manner, promoting financial stability and reliability within the construction industry. By stipulating the timeframe for payment, the legislation seeks to reduce instances of delayed payments, which can lead to cash flow issues for businesses involved in construction projects. This protection is vital for maintaining healthy contractor-subcontractor relationships and ensuring the overall efficiency of construction operations.