News & Analysis as of

Payment Terms Subcontractors

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

Troutman Pepper

PA Appellate Court Issues Strong Reminder: CASPA’s Fee-Shifting Mechanism Applies to Subcontractors, Contractors, and Owners Who...

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SDSP, LLC v. Attias, 2023 Pa. Super. Unpub. LEXIS 1518 - The Superior Court of Pennsylvania vacated a multimillion-dollar award to subcontractors arising from a payment dispute, and remanded the matter to the trial court...more

Williams Mullen

New Amendments to Virginia’s “Prompt Payment” Law take effect July 1, 2023

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In 2022, the General Assembly enacted significant changes to Virginia Code §§ 2.2-4347, 2.2-4354 and 11-4.6 that mandated prompt payment by owners, contractors and subcontractors on public and private construction projects...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

Gray Reed

Can the Trust Fund Act be Waived

Gray Reed on

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

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

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

Obermayer Rebmann Maxwell & Hippel LLP

[Webinar] Government Contracting Fundamentals Series: Key Considerations in Federal Subcontracting - September 16th, 12:00 pm -...

Obermayer is excited to introduce its new  “GovCon Examiner Live” webinar series, your resource for the fundamentals in government contracting and small business procurement. Over the course of 12 months, our experienced...more

Bradley Arant Boult Cummings LLP

Timing Is Everything: Miller Act Notice Defect Saves Surety

The Miller Act protects subcontractors from nonpayment on federal projects by requiring prime contractors to issue payment bonds. To obtain relief under the Miller Act, a subcontractor must (1) give the prime contractor...more

Butler Snow LLP

Deadlines for Mechanics’ Liens and Construction Liens: Mississippi

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For contractors and subcontractors, late payments can be an all-too-familiar part of the construction industry. Many assume the best of intentions—maybe the check is still in the mail? Maybe there was an emergency...more

Butler Snow LLP

Deadlines for Mechanics’ Liens and Construction Liens: Arkansas

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For contractors and subcontractors, late payments can be an all-too-familiar part of the construction industry. Many assume the best of intentions—maybe the check is still in the mail? Maybe there was an emergency...more

Farrell Fritz, P.C.

Think Before You Speak: Words and Actions Can Bind You Beyond The Terms of a Previously Agreed Upon Subcontract Agreement

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In a recent case before Justice Andrea Masley, Corporate Electrical Technologies, Inc. v. Structure Tone, Inc. et al., Plaintiff Corporate Electrical Technologies, Inc. (“CET”), a subcontractor, was hired by Structure Tone,...more

Buckingham, Doolittle & Burroughs, LLC

Dear YouDig? Unfair retainage

Dear YouDig?, We are finishing up a contract to start a piece of a big project. The owner is pushing for a 10 percent retainer of all of our payments. It does not seem fair as most of our costs are front loaded and most of...more

Troutman Pepper

Recent Decisions Recognize Limits on Lien Amounts Properly Includable Under Michigan and Connecticut Lien Statutes

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Lost profits, not part of unpaid contract balance, may be recoverable as consequential damages in contract claim, but cannot be included in lien. TSP Services Inc. v. National-Standard, LLC, 2019 BL 340267 (Mich. Ct. App....more

Barnea Jaffa Lande & Co.

Guidelines for Standardization of Contracts and Tenders of Infrastructure Companies in the Area of Transportation

In light of the rise of investments in transportation projects, the Accountant General of the Ministry of Finance, the Director General of the Ministry of Transport, and the Manager of the Government Companies Authority...more

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

Effective Use of the Subcontractor’s Sworn Statement

The subcontractor's sworn statement is one of most effective tools that contractors can use to ensure that lower-tier subcontractors and suppliers receive adequate payment throughout the job, yet many contractors either fail...more

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