Change in “Pay When Paid” Provisions for VA Public Contracts

"An Act to amend and reenact §§ 2.2-4354 and 11-4.6 of the Code of Virginia, relating to contracts; payment clauses to be included; right to payment of subcontractors."

Why this is important: There are currently bills before the Virginia Legislature to amend VA ST §§ 2.2-4354 and 11-4.6. The proposed amendments to VA ST § 2.2-4354 address the issue of who is liable for prompt payment of subcontractors on government construction projects. The proposed amendments to VA ST § 11-4.6 include new contract terms that must be included in all non-public sector construction contracts. Below are summaries of these proposed amendments.