Prompt Payment Improvement Act of 1998

Prompt Payment Improvement Act of 1998 - Amends Federal law to direct the Director of the Office of Management and Budget to set forth in writing the prompt payment policy applicable to subcontractors under Federal contracts. Requires the head of each Federal agency to: (1) provide a copy of such policy to each contractor awarded a contract by the agency; and (2) require the contractor to provide a copy of the policy to each of its subcontractors under the contract. Directs the head of each agency to require each such contractor to include in each subcontract awarded under the contract a clause containing, among other things, the requirements and penalties of the prompt payment statute relating to the obligations of the Federal Government and prime contractors in making timely progress payments.