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Construction Contracts Pay When Paid Contract Terms

BCLP

Does “Back to Back” Mean “Pay When Paid” in Construction Contracts?

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In Sze Fung Engineering Limited v Trevi Construction Company Limited [2025] HKCA 278, the Hong Kong Court of Appeal (“CA”) ruled that the “back to back” wording in that case was not a “pay when paid” clause, but governed only...more

BCLP

HK Security of Payment Bill: Government Responds to Submissions from the Public

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The Hong Kong Government received 37 submissions from the public in July 2024 regarding the Construction Industry Security of Payment Bill (“Bill”) and held discussions with deputations from different stakeholders at a LegCo...more

Miller Nash LLP

[Webinar] Finish First When Others Around You Fall: Tips on How to Financially Protect Your Organization During a Project -...

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From a practical business perspective, you can evade disaster, protect your payments from others’ financial shortages, and avoid the pitfalls of another’s bankruptcy—and still end up first—with a bit of knowledge, planning,...more

BCLP

HK Security of Payment Bill: An Insolvency Exception to Ban Against “Pay When Paid” Clauses?

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On 16 July 2024, the Hong Kong LegCo Bills Committee which is considering the Construction Industry Security of Payment Bill (“Bill”) held a meeting to receive representations and submissions on the Bill from deputations sent...more

Carr Maloney P.C.

“Pay-if-paid” and “Pay-when-paid” Clauses in Maryland and the District of Columbia

Carr Maloney P.C. on

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

Akerman LLP

REMINDER: Starting January 1, 2023, Virginia Will Prohibit Pay-If-Paid Clauses and Limit Pay-When-Paid Clauses

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As explained in a prior update, Virginia recently enacted laws prohibiting pay-if-paid clauses in construction contracts and limiting the effectiveness of pay-when-paid clauses in certain agreements for public and private...more

Venable LLP

Even Federal Contractors and Subcontractors Should Pay Heed to State Law on Conditional Payment Clauses

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​​​​​​​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

Akerman LLP

Virginia Prohibits Pay-If-Paid Clauses and Limits Pay-When-Paid Language

Akerman LLP on

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

Buchalter

Virginia Joins 11 Other States Prohibiting Pay-If-Paid Clauses in Construction Contracts

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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

Williams Mullen

New Virginia Prompt Payment Statutes Invalidate Most 'Pay When Paid' Clauses

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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

Woods Rogers

Virginia’s New Construction Payment Terms (Part 1)

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(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

Saul Ewing LLP

Delaware Court Shows Importance of Order of Priority Clauses

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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

Troutman Pepper Locke

California Appeals Court Provides Guidance on ‘Pay-When-Paid’ Provisions in Construction Subcontracts

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On April 17, the California Court of Appeal decided Crosno Construction, Inc. v. Travelers Casualty & Surety Company of America, effectively narrowing the scope of enforceable “pay-when-paid” provisions in construction...more

Troutman Pepper Locke

California Appeals Court Provides Guidance on 'Pay-When-Paid' Provisions in Construction Subcontracts

Troutman Pepper Locke on

On April 17, the California Court of Appeal decided Crosno Construction, Inc. v. Travelers Casualty & Surety Company of America, effectively narrowing the scope of enforceable “pay-when-paid” provisions in construction...more

Faegre Drinker Biddle & Reath LLP

Illinois Appellate Court Ruling Provides (Another) Reason to Double-Check Your Payment Clauses

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

Haight Brown & Bonesteel LLP

One Word Makes All The Difference – The Distinction Between “Pay If Paid” and “Pay When Paid” Clauses

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

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