News & Analysis as of

Construction Disputes Contract Terms Prompt Payment

Goulston & Storrs PC

Owners Beware: Massachusetts Supreme Judicial Court Underscores Strict Adherence to Prompt Payment Act

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On Monday, June 17, 2024, the Supreme Judicial Court (“SJC”) issued its decision in Business Interiors Floor Covering Business Trust v. Graycor Construction Company, Inc., et al, which interprets the Massachusetts Prompt...more

Goulston & Storrs PC

Massachusetts “Prompt Pay Law” Imposes New Obligations on Project Owners and Construction Lenders

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An Act Promoting Fairness in Private Construction Contracts (the “Prompt Pay Law,” codified at M.G.L. Section 29E, Chapter149), which imposes new requirements on private construction projects, will apply to all construction...more

BCLP

Changes in the Payment and Adjudication Processes Regarding Variations and Time-related Disputes

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In May 2024, the Hong Kong Government introduced the Construction Industry Security of Payment Bill (Bill) to the Legislative Council for first reading. If the Bill is passed into law, the Bill will introduce a statutory...more

Holland & Knight LLP

New York Could Further Limit Retainage on Public and Private Construction Projects

Holland & Knight LLP on

Proposed bills in the New York State Assembly and Senate would prohibit the retention of any amount of payment due and owing for materials delivered and accepted for public and private construction projects. The identical...more

Gray Reed

It Doesn’t Pay to Delay: Prompt Payment Acts in Texas

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If an owner or general contractor fails to timely pay on a project, you may be entitled to prompt pay interest. Prompt payment acts are intended to deter late payments by general contractors and owners by enabling contractors...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

Robinson+Cole Construction Law Zone

NY Prompt Pay Act for Private Construction Caps Retainage at Five Percent

New York’s Prompt Pay Act, which sets the standards that govern private commercial construction contracts exceeding $150,000, was amended effective November 17, 2023. The Amendment known as Senate Bill 3539 provides two...more

Gray Reed

Texas Legislature Expands Suspension Rights Under the Prompt Pay Acts

Gray Reed on

The private and public prompt pay acts both provide contractors and subcontractors with the right to stop work if an owner or upstream contractor fails to pay an undisputed amount.  With H.B. 3485, the Texas legislature has...more

Burr & Forman

Feeling Rejected? MA Court Construes for the First Time the Provisions of the Prompt Pay Act

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In life, rejection is often hard to swallow.  In construction, that rejection can sometimes amount to millions of dollars.  A Massachusetts court recently held that an owner’s rejection of the contractor’s payment...more

Robinson+Cole Construction Law Zone

Massachusetts Appeals Court Strictly Construes Prompt Payment Act

On June 7, 2022, the Massachusetts Appeals Court issued an opinion of first impression regarding the Massachusetts Prompt Payment Act, G.L. c. 149 § 29E (the “Act”).  In Tocci Building Corp. v. IRIV Partners, LLC, Appeals Ct....more

Robinson+Cole Construction Law Zone

The Massachusetts Prompt Pay Statute: A Cautionary Tale for Those Who Don’t Read the Fine Print

In a recent decision likely to have a significant impact upon the way private construction projects in Massachusetts are managed, the Superior Court recently construed the Massachusetts Prompt Pay Statute in the way the...more

Burr & Forman

Payment of Retainage with “conditions attached” Deemed Non-Payment

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Given the amount of leftover Halloween candy in our house, you bet that I can make some deals with my kiddos: “If you do this, I will give you some candy” … or … “If you don’t stop doing this … I won’t give you any candy.”...more

Seyfarth Shaw LLP

Illinois Expands Protections Under the Contractor Prompt Payment Act by Imposing New Restrictions on Retainage

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The Illinois Contractor Prompt Payment Act, 815 ILCS 603/1, et seq. (the “Act”) was first enacted in 2007 and designed to safeguard contractors and subcontractors on private projects by providing a mechanism to expedite...more

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