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Prompt Payment Contract Terms Construction Industry

Conn Kavanaugh

The Massachusetts Prompt Payment Act Continues to Have Harsh Consequences for Transgressors, Unwitting or Otherwise

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With the exception of those living under rocks, construction professionals are well aware of the recent spate of litigation about the Massachusetts Prompt Pay Act. In 2022, the Massachusetts Appeals Court interpreted the Act...more

BCLP

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

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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?

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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

BCLP

HK Government Responds to 19 June Letter From Legco in-house Lawyer Regarding the Security of Payment Bill

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Our earlier Insight “LegCo in-house lawyers request clarifications regarding the Security of Payment Bill” reported that the Legal Service Division of the LegCo wrote a letter on 19 June 2024 to the HK Government seeking to...more

BCLP

Comments from HK LegCo Members Regarding the Security of Payment Bill

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On 21 June 2024, the Hong Kong LegCo Bills Committee which is considering the Construction Industry Security of Payment Bill (“Bill”) held a meeting to discuss various policy concerns of the Bill....more

Porter Hedges LLP

Understanding the Texas Prompt Payment Act

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The construction industry is a cornerstone of Texas’s robust economy, and timely payments are critical for maintaining the health of this sector. To ensure that contractors, subcontractors, and suppliers are paid promptly for...more

Kilpatrick

Third Circuit Affirms Kilpatrick’s Recovery of CASPA Penalties and Attorneys’ Fees Award in C.J. Hughes v. EQM

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Kilpatrick attorneys secured a significant decision for contractors and subcontractors performing work in Pennsylvania. The Third Circuit Court of Appeals affirmed District Court Judge William S. Stickman’s award of...more

Gould + Ratner LLP

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

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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

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

Spilman Thomas & Battle, PLLC

CASPA Clash: Major Victory for Contractor in Pipeline Project Dispute as Third Circuit upholds CASPA Penalties and Fees

In a significant decision on April 17, 2024, the U.S. Court of Appeals for the Third Circuit upheld significant penalties and attorney fees awarded to C.J. Hughes Construction Company, Inc. under the Pennsylvania Contractor...more

BCLP

Fair Payment Practices: Recent Developments

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In this Insight, first published in PLC, Jennifer Badham discusses various attempts to address late payments and long payment terms that are a common problem in construction industry supply chains, including two recent...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

Bennett Jones LLP

Prompt Payment Update—Ontario Superior Court Confirms Adjudicator's Decision Is Not Final

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The enactment of prompt payment and fast-track adjudication legislation across Canada has created some uncertainty regarding the finality of an adjudicator's decision. In the recent decision of the Ontario Superior Court of...more

BCLP

VAT Invoices and the Final Date for Payment

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In its recent decision in Lidl Great Britain Ltd v Closed Circuit Cooling Ltd (t/a 3CL) [2023] EWHC 2243 (TCC), the TCC provided some helpful guidance around the statutory payment provisions in the Housing Grants,...more

Venable LLP

Even Federal Contractors and Subcontractors Should Pay Heed to State Law on Conditional Payment Clauses

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​​​​​​​The Virginia legislature recently took a broad step toward limiting the use of certain common clauses in construction subcontracts. This new legislation, effective January 1, 2023, amends the state's Prompt Payment Act...more

Harris Beach Murtha PLLC

MA Appeals Court: Contractor's Pay Applications Deemed Approved for Owner's Failure to Comply with Prompt Pay Law

The Massachusetts Appeals Court has interpreted for the first time the Massachusetts Prompt Payment Act (the “Prompt Pay Law”) in the matter of Tocci Building Corporation v. IRIV Partners, LLC, et al., Nos. 21-P-393 &...more

Cohen Seglias Pallas Greenhall & Furman PC

Prompt Payments: How CASPA and Other State Laws Afford Contractors Protections

Presented by Cohen Seglias attorneys Matthew Gioffre, Lisa Wampler, and Daniel E. Fierstein on November 17, 2020 for the Western Pennsylvania Chapter of NECA. 2018 saw the enactment of important changes to CASPA, a...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

Cohen Seglias Pallas Greenhall & Furman PC

Prompt Payments: How CASPA and Other State Laws Afford Contractors Protections

2018 saw the enactment of important changes to CASPA, a Pennsylvania law that helps contractors and subcontractors enforce their contractual payment terms. In this Mechanical & Service Contractors Association of Eastern PA...more

Bennett Jones LLP

Prompt Payment for Construction in Ontario

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Prompt payment arrived for Ontario's construction industry October 1, 2019. The final stage of implementation of the changes introduced the Construction Lien Amendment Act, 2017, came into force on October 1, 2019. Subject to...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

Steptoe & Johnson PLLC

CASPA Is Now a More Powerful Tool for You to Collect Payment

Most states have a “prompt payment act” that protects contractors’ and subcontractors’ right to payment for work on public projects. Pennsylvania also has a law that protects contractors’ and subcontractors’ right to payment...more

Troutman Pepper Locke

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

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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

Spilman Thomas & Battle, PLLC

CASPA, The Unfriendly Statute

Pennsylvania is on the verge of a tougher contractor payment law that adds remedies including suspension of work, anti-waiver provisions, and mandatory payment for work successfully completed....more

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