Prompt Payments: How CASPA and Other State Laws Afford Contractors Protections
In 2022, amendments to the Prompt Payment and Construction Lien Act (PPCLA) introduced a prompt payment and related fast-track adjudication process. Recently, in Welcome Homes Construction Inc v Atlas Granite Inc, the...more
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
Earlier this year, the Associated Subcontractors of Massachusetts hired Robinson+Cole attorney Joseph Barra to submit an amicus brief to the Massachusetts Supreme Judicial Court for consideration in the appeal pending before...more
On June 17, 2024, the Massachusetts Supreme Judicial Court (“SJC”) issued its decision in Business Interiors Floor Covering Business Trust v. Graycor Construction Company, Inc. (“Graycor”). The SJC’s decision addresses an...more
On June 17, 2024, the Supreme Judicial Court (SJC) issued its first decision interpreting the Massachusetts Prompt Pay Act (the “PPA”). In Business Interiors Floor Covering Business Trust v. Graycor Construction Co., Inc.,[1]...more
In 2006, New Jersey enacted the “Prompt Payment Act,” codified at N.J.S.A. § 2A:30A-1, et seq. (the “Act” or “PPA”). The Act requires the prompt payment of contractors, subcontractors, sub-subcontractors, and material...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
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
No matter your tier in the construction contracting chain, understanding the nuanced rules and procedures about retainage, back charges, and other payment withholdings is critical to managing cash flow and protecting your...more
The Virginia General Assembly made significant amendments to general rules for construction contracts, as well as the specific rules for public entity construction contracts in the Prompt Payment Act, that largely remove the...more
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
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
Key Highlights - - Pursuant to the Prompt Payment and Construction Lien Act (the PPCLA), previously known as the Alberta Builders' Lien Act, funds paid following the issuance of a certificate of substantial performance are...more
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
The June 2022 edition of OnSite Magazine discussed the case of J&M Interiors v. Centerton Square Owners, which addressed a subcontractor’s right to be paid under New Jersey’s Prompt Payment Act (“PPA”). Several months after...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
In Broadway Concrete Investments, LLC v. Masonry Contracting Corp., et al, Case No. CV-18-903809, 2022-Ohio-19 (January 6, 2022) the Eighth District Court of Appeals confirmed that Ohio’s Prompt Pay Act, at R.C. 4113.61,...more
Yesterday, the Ohio House of Representatives passed a bill (H.B. No. 68) that would amend Ohio’s Prompt Pay Act (ORC Section 4113.61) to provide general contractors with payment protection akin to that currently enjoyed by...more
Last November, Arizona’s Court of Appeals issued a memorandum decision analyzing Arizona’s Prompt Pay Act. Though the decision was not published and is not binding authority, it does guide the construction industry and...more
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
The Tennessee legislature recently passed the Construction Industry Payment Protection Act (“CIPPA”), SB2681/HB2706, which offers significant changes to the Tennessee construction industry. Not only does the act amend...more
On October 23, 2019, the Ohio House of Representatives introduced a bill (H.B. No. 380) that would amend Ohio’s Prompt Pay Act (ORC Section 4113.61) to provide general contractors with payment protection similar to that...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