News & Analysis as of

Contract Terms General Contractors Prompt Payment

Kerr Russell

Michigan’s Prompt Payment Act

Kerr Russell on

Like they warned us on Schoolhouse Rock, it is no easy feat for a bill to become enacted into law. Just ask the proposed “Prompt Pay” legislation that currently languishes in Michigan. By way of background, “Prompt Pay”...more

Hinckley Allen

Changes to the Timing for Prompt Payment on All Connecticut State Contracts are Coming – Be Prepared

Hinckley Allen on

Connecticut’s prompt payment requirements for state contracts are about to change. The Connecticut General Assembly approved the new state budget bill (House Bill 7287), which includes a significant change to Connecticut’s...more

BCLP

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

BCLP on

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

BCLP

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

BCLP on

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

Gould + Ratner LLP

Key Takeaways From Construction Roundtable on “Digging Into Pre-Construction: What Owners and Developers Need to Know When...

Gould + Ratner LLP on

The key to a successful construction project often lies in how much work you do long before the first shovel of dirt is turned. But where should an owner or developer focus their time and resources for the best possible...more

Gray Reed

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

Gray Reed on

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

Venable LLP

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

Venable LLP on

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

Hahn Loeser & Parks LLP

Promptly Pay the Subcontractor or Pay the Consequences

Under Ohio’s Prompt Pay Act, a general contractor could end up paying more for the subcontractor’s attorneys’ fees than the general contractor owed to the subcontractor. That was the ruling by the Ohio appellate court in...more

Robinson+Cole Construction Law Zone

Subcontract Payment Provisions Mean Exactly What They Say in Connecticut

The recent Connecticut Appellate Court decision in Electrical Contractors, Inc. v. 50 Morgan Hospitality Group, LLC, 211 Conn. App. 724 (2022), eliminated any remaining doubt regarding a subcontractor’s right to payment for...more

Buchalter

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

Buchalter on

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

Tucker Arensberg, P.C.

CASPA and COVID-19 – Withholding Payments for Contracting Work

Tucker Arensberg, P.C. on

The Pennsylvania Contractor and Subcontractor Payment Act 73 P.S. § 501, et seq. (“CASPA”) was enacted to protect the right to payment of contractors and subcontractors who perform improvements on real property. CASPA...more

Buchalter

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

Buchalter on

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

Ogletree, Deakins, Nash, Smoak & Stewart,...

Construction One-Minute Read: Illinois Restricts Retainage on Private Construction Projects

Every private construction project in Illinois will be affected by a new law, effective immediately. The Contractor Prompt Payment Act (815 ILCS 603/1, et seq.) was amended to restrict the use of retainage on construction...more

Snell & Wilmer

Overview of New Mexico Construction Law

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We’ve seen an uptick in out-of-state companies working on construction projects in New Mexico. The following is an overview of some of the nuances of New Mexico construction law about which companies may want to be aware. ...more

Troutman Pepper Locke

Under California’s Prompt Payment Statute, a Direct Contractor May Not Withhold Retention From a Subcontractor Simply Because a...

Troutman Pepper Locke on

United Riggers & Erectors, Inc. v. Coast Iron & Steel Co., 2018 Cal. Lexis 3510 (May 14, 2018) - In 2010, Universal City (“Universal”) hired Coast Iron & Steel Co. (“Coast Iron”) to build a new ride at the Universal...more

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