Practical Training for Project Managers & Supervisors Two-Part Webinar Series: Part Two
General Contractors may seek to condition payments to Subcontractors by using “pay-if-paid” or “pay-when-paid” clauses in their contracts. Typically, as the name suggests, pay-when-paid provisions concern the timing of...more
No matter your tier in the construction contracting chain, understanding the nuanced rules and procedures about retainage, back charges, and other payment withholdings is critical to managing cash flow and protecting your...more
The Virginia legislature recently took a broad step toward limiting the use of certain common clauses in construction subcontracts. This new legislation, effective January 1, 2023, amends the state's Prompt Payment Act...more
On April 27, 2022, Virginia Governor Glenn Youngkin ratified amendments to two Virginia statutes, prohibiting pay-if-paid clauses in construction contracts, and limiting the effectiveness of pay-when-paid clauses in certain...more
Virginia has joined 11 other states that have expressly prohibited “pay if paid” clauses in construction contracts. If you have construction projects in Virginia, then read on. If you want know whether your state prohibits...more
Construction contracts routinely set payment terms as “pay-when-paid” or “pay-if-paid.” These terms protect the prime contractor from bearing all the risk of nonpayment by the owner. In Virginia, however, that will not be...more
On April 27, 2022, Virginia Governor Glenn Youngkin signed Senate Bill 550 into law, amending a portion of the Virginia Prompt Payment Act and a component of the Virginia wage theft statute. Va. Code § 2.2-4354 and VA. Code §...more
On April 27, 2022, the Virginia General Assembly passed Senate Bill 550, which makes “pay when paid” and “pay if paid” clauses unenforceable in most circumstances and requires both public and private construction contracts to...more
Virginia has joined a small group of states that prohibit the inclusion of pay-when-paid clauses in private and public construction contracts. There are, however, some important ambiguities in the new legislation. ...more
Contractor and subcontractor negotiations often lead to contract terms and language being incorporated into the subcontract agreement, which then leads to surprising results when issues arise. These results often occur when...more
This article is a continuation of Monday’s article, and we will be discussing in detail the new payment terms for all construction contracts in Virginia....more
(Part one of a two-part article series) Confused about “pay-when-paid”, “pay-if-paid” clauses and the requirements of Virginia’s Prompt Payment Act on Virginia construction contracts? A new law intending to change the...more
A recent bench trial in Delaware State Court ruled that a subcontractor was entitled to payment from a general contractor because an order of priority clause gave priority to a bid proposal contract term that barred a...more
As everyone in the construction industry knows, timely payment is essential. However, the payment process can be complicated, with unexpected issues throwing plans off course. In their second webinar of 2021, Cohen...more
In California, the "pay-when-paid" contract language typically found in general contractor’s subcontractor agreement may no longer be enforceable. A contract provision requiring a subcontractor to wait until the general...more
A recent ruling out of the First District Illinois Appellate Court makes one thing clear: contractors and subcontractors should pay close attention to payment clauses on all contract forms. In Beal Bank Nevada v. Northshore...more
Courts in Alberta and Ontario have recently released two notable decisions on “pay when paid” clauses: Sprague Rosser Contracting Co. Ltd. v. EOS Pipeline & Facilities Inc., (EOS Pipeline) and 6157734 Canada Inc. v. Bluelime...more
Payment clauses in California construction contracts are often complex and multi-layered. This is especially true in contracts between general contractors and their subcontractors. The general does not want to pay the subs...more