News & Analysis as of

Construction Contracts Payment Terms

BCLP

Payment Notices Under the Construction Act 1996, a Welcome Clarification

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In Placefirst Construction Ltd v Car Construction (North East) Ltd [2025] EWHC 100 (TCC), the Technology and Construction Court has shed welcome light on the payment notice requirements of the Housing Grants, Construction and...more

Mayer Brown

Legal Developments in Construction Law: February 2025

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1. COURT UNTANGLES CONSTRUCTION ACT PAYMENT NOTICE PUZZLES - A subcontract dispute required the court to rule on the validity of a payment notice, and a payless notice, under a JCT 2016 design and build subcontract, with...more

DarrowEverett LLP

Capturing the Sun: State Prompt Payment Acts' Effects on Solar Construction

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As the energy sector continues to expand, developers and contractors looking to expand their footprint are crossing state lines to construct energy projects. This is a good strategy for applying the same, successful...more

Smith Debnam Narron Drake Saintsing & Myers,...

Understanding the Basics of a Construction Contract

Construction contracts are essential in the construction industry, governing the relationships and responsibilities of all parties involved in a project. Whether you’re a contractor, subcontractor, or property owner,...more

Stoel Rives LLP

New Law Requires Timely Payment of Undisputed Change Order Claims

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RCW 39.04.360, effective June 6, 2024, sets forth protections and assurances of payment for contractors, subcontractors, and suppliers that perform undisputed changed or additional work on both public and private construction...more

Venable LLP

New Law Sets Maximum Construction Contract Retainage at 5% in New York

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On November 17, 2023, Governor Kathy Hochul signed a bill into law amending Sections 756-a and 756-c of the New York State Prompt Payment Act (N.Y. Gen. Bus. Law §756 (McKinney 2009)) governing restrictions on retainage and...more

Bradley Arant Boult Cummings LLP

Hell or High Water: Why Contractors Must Understand Contractual Risks

The Armed Services Board of Contract Appeals (“ASBCA”) recently denied a contractor’s claim for additional compensation as the contractor failed to establish its work was constructively suspended or that its contract was...more

Cohen Seglias Pallas Greenhall & Furman PC

New Virginia Law Bans Contingent Payment Provisions in Construction Contracts

A new bill has been signed into law in Virginia that prohibits the use of contingent payment provisions on construction projects. The new law amends VA ST §§ 2.2-4354 and 11-4.6 and provides that “[p]ayment by the party...more

Sands Anderson PC

The End of “Pay When Paid” in Virginia Construction Contracts with State and Local Governments

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“Pay When Paid” or “Pay if Paid” clauses in subcontracts have long been a thorn in the side of subcontractors. If Governor Youngkin signs into law a new bill that passed in both houses of the Virginia General Assembly, those...more

White & Case LLP

Managing construction risks in Asia-Pacific: Malaysia

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With its strategic location and significant natural resources, Malaysia is an internationally recognized investment-friendly jurisdiction with a significant construction industry. Malaysian law offers procedural safeguards...more

Cohen Seglias Pallas Greenhall & Furman PC

[Webinar] Payment Terms: A Trap for the Unwary - July 20th, 12:00 pm - 1:00 pm ET

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

Vinson & Elkins LLP

Getting Paid: Mitigating Non-Payment Risks And Deploying “Self-Help” Remedies Under UAE Law

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One of the biggest risks on any construction project is non-payment. This article sets out contractual measures to mitigate non-payment risks and describes “self-help” remedies to obtain payment under United Arab Emirates...more

BCLP

Security of Payment in Hong Kong - pilot programme for public works contracts

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As the old saying holds, cash-flow is the life blood of the construction industry. In 2021, Hong Kong looks set to join Singapore, Australia and other jurisdictions in implementing a Security of Payment regime to...more

Buchalter

That’s A Goocher: SD Court Finds Enforceable Construction Contract Despite Lack of Time Component

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What’s a goocher?  If you saw the movie, Stand By Me, then you know exactly what I mean.  And there are times when parties to a construction contract face a goocher. ...more

Gray Reed

Can the Trust Fund Act be Waived

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The general prohibition against waiving lien rights under Chapter 53 of the Texas Property Code has been written about extensively, and is well known through the industry.  However, the Construction Trust Fund Act (Ch. 162 of...more

White & Case LLP

Construction contracts: who bears the risk of cost overruns?

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Construction contracts may be priced in a number of ways. For most contracts, even those which are "fixed price", there is usually scope for cost/price variability. Four cases from December 2020 highlight some of the...more

Carlton Fields

[Webinar] The Government Construction Contract Transition: Making the Plunge from Commercial to Government Work - February 18th,...

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Given the slowdown of construction activity, there is an inevitable uptick in government contract activity. Contractors who are entering into the government contract arena need to know the complex rules and regulations in...more

Gray Reed

Mechanic’s Liens For Design Professionals: A Powerful Payment Collection Tool

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In these unprecedented times, every bit of revenue is critical to the continued operation of nearly every business operating within the construction industry. Fortunately, there are a myriad of remedies to aide collection...more

Jones Day

Amendments to Queensland Security of Payment Legislation

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The security of payment regime in Queensland has undergone significant reform in recent years. Since the introduction of the Building Industry Fairness (Security of Payment) Act 2017 (Qld), the regime has remained the subject...more

Cohen Seglias Pallas Greenhall & Furman PC

[Webinar] WPA NECA: Prompt Payments – How CASPA and Other State Laws Afford Contractors Protections - November 17th, 11:00 am -...

2018 saw the enactment of important changes to CASPA, a Pennsylvania law that helps contractors and subcontractors enforce their contractual payment terms. In this Western Pennsylvania Chapter of NECA webinar, Matt Gioffre,...more

Buchalter

Not Just An Old Wives’ Tale: Negotiating “Paid In Full” Check Binds Contractor

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Long before I was an attorney, I heard this tale that if you endorsed a check that had the words “PAID IN FULL” written on the check, then you were accepting the check as full payment of whatever was owed. But I have never...more

Jones Day

Security of Payment Legislation in Australia

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Australia-wide, companies are navigating the uncertainties arising from COVID-19. Our previous White Papers identified the risks arising for construction projects and observed that the fallout is likely to give rise to...more

Miles Mediation & Arbitration

[Webinar] Construction ADR Webinar: Residential & Multi-Family Construction Disputes: Is There A Practical Solution? - September...

Join Miles mediator and arbitrators Jennifer Grippa and David Matthews, along with Frank Brown, partner in Weissman Law and General Counsel of the Greater Atlanta Home Builders Association, Inc., Jerry Warshaw, Founder and...more

Bass, Berry & Sims PLC

Tennessee Enacts New Construction Legislation in 2020

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The Tennessee Construction Industry Payment Protection Act was signed into law on June 22. The Act addresses or reallocates certain risks associated with non-payment on construction projects under Tennessee’s Prompt Pay Act...more

Troutman Pepper Locke

Level 10 Construction v. Sea World LLC: Can Force Majeure Save Sea World?

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On June 8, 2020, Level 10 Construction, LP (“Level 10”), a construction company hired by Sea World San Diego (“Sea World”), filed a Complaint in California federal court alleging that Sea World is withholding over $3.2...more

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