Prompt Payments: How CASPA and Other State Laws Afford Contractors Protections
The court in AECOM v. Flatiron was back at it last week with rulings on the parties’ post-trial motions. As you may recall, the case was tried to a jury earlier this year. The jury returned a verdict for AECOM in the amount...more
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
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
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
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
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
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
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
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
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
My commute home last night took longer than usual. It was not excessive traffic, an accident, or a stalled car. Rather, the cause of my delayed commute was a turtle: one single turtle crossing the road, holding up about 30...more
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
Construction law is NOT boring, at least that’s what I tell my daughters. In these series of posts, I will explore some of the VERY interesting historical facts about construction law that can be used at your next motion...more
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
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
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
There are many legal issues to consider when bidding on and building projects in American Indian Country. Which labor and employment laws apply? Are there contracting or hiring preferences that apply? Do the Prompt Pay Act...more
Getting paid on time is essential to running a construction business. And the bigger the job, the bigger the risk it can pose to your company. Fortunately, there are a number of tools available to help contractors,...more
Woodrow Wilson Constr. LLC v. Orleans Par. Sch. Bd., 2018 La. App. LEXIS 762 (April 18, 2018) - The Orleans Parish School Board (“OPSB”) awarded a prime contract to Woodrow Wilson Construction (“WWC”) for the construction...more
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 what was owed. But I had never really...more
On most construction projects, a project owner will require the contractor to certify that it has fully paid each of its subcontractors as a condition to the owner making payment to the contractor. The purpose of these...more
U.S. Supreme Court Holds Forum-Selection Clauses Are Presumptively Enforceable - Atl. Marine Constr. Co. v. United States Dist. Court 2013 U.S. LEXIS 8775 (U.S. 2013) - This action arose out of a forum-selection...more