Re:  Subcontract payment terms:

My experience is on subcontracts with a grant as the prime.  For those we try
to achieve Net 30 payment which is usually possible.  We increase the
subcontract amount as our award is increased.  In other words, we do not write
a subcontract for more than one period of funding.  When an increment comes
in, we do an amendment increasing the subcontract.

Our general policy on fast-paced subcontracts from fast-paced prime
contracts would be to pay an invoice whether or not we have received payment
but we would keep a tight reign on it.  I'm sure this method would be
tough for an institution of the size of Ohio State.

Ruth Tallman
Office of Research and Sponsored Programs
Lehigh University
Phone: 610-758-3024