East Twin Cities

Congressman Pete Stauber of Minnesota’s 8th District has reintroduced the Small Business Payment for Performance Act, a bill aimed at ensuring fair treatment of small construction contractors during federal procurement processes.

“Small businesses on Main Street America are the economic engine of our economy, and it's important that the federal government supports their ability to succeed when fulfilling government contracts. I’m proud to reintroduce the Small Business Payment for Performance Act, which will hold the federal government accountable for any changes to contracts awarded to small businesses. This important legislation will protect small businesses from unexpected financial burdens, incentivizing more small businesses to compete for federal contracts that will drive economic growth in their respective communities,” Stauber said.

The proposed legislation has received support from several industry organizations. The American Subcontractors Association stated, “The American Subcontractors Association applauds Rep. Stauber in advancing this important legislation, which will effectuate change order reform for all construction contractors by ensuring they receive timely payments for their completed work.”

The Associated General Contractors of America added, “Contracting with the Federal government comes with a lot of uncertainty and change orders further drive-up risk and costs that the construction company is often forced to absorb. The Small Business Payment for Performance Act will help ensure small business construction contractors do not shoulder the financial burden of unilateral agency changes to a contract.”

Stan Kolbe from the Sheet Metal and Air Conditioning Contractors National Association commented, “Every SMACNA contractor in Minnesota and across the nation bidding and building federal projects greatly appreciates Rep. Pete Stauber for sponsoring the Small Business Payment for Performance Act. At a time of rising project material costs and frequent change orders, we view Rep. Stauber’s bill as our highest priority. Without passage of the Small Business Payment for Performance legislation, the payment problems for contractors can only grow worse and the economic health of contractors small, medium and large will suffer greater harm.”

The National Association of Surety Bond Producers also expressed its support: “The National Association of Surety Bond Producers commends Representative Pete Stauber for the introduction of the Small Business Payment for Performance Act of 2025. This critical legislation lessens the considerable financing burden placed on small construction businesses when federal project owners make unilateral changes to construction contracts. By requiring federal project owners to make interim partial payments on owner-directed change orders, small construction businesses receive necessary and timely cash flow for performance. As the construction industry continues to face uncertain and variable market conditions, including supply disruptions and increasing materials prices, all construction businesses, but particularly small construction businesses, need federal payment practices that are not unfairly burdensome. Passage of this legislation will ensure that small construction businesses performing on federal contracts have confidence that equitable payment practices exist for owner-directed change orders. Thank you to Rep. Stauber for recognizing this significant issue and introducing this important procurement reform.”

Change orders—alterations made by agencies during ongoing projects—are common in government contracting but often occur without written agreements or proper compensation procedures.

If enacted, this measure would allow small companies working on federal projects to request an equitable adjustment if a contracting officer issues a change order without mutual agreement; it would also require at least half of related costs be paid promptly upon such a request.

Pete Stauber has represented Minnesota’s 8th district in Congress since 2019 after succeeding Rick Nolan (source). Before his congressional service began in 2019 (source), he was part of St. Louis County Commission between 2013-2019.

Stauber was born in Duluth in 1966 and currently lives in Hermantown; he graduated from Lake Superior State University with a bachelor’s degree in 1990.