W. Alexander Burnett and Christopher McDonald | Williams Mullen 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 and invalidated “pay if paid” clauses (the Prompt Payment law). That Prompt Payment law became effective as of January 1,… Continue reading New Amendments to Virginia’s “Prompt Payment” Law take effect July 1, 2023
Tag: Prompt Payment
Important Update to DC’s Construction Prompt Payment Act
Jake Mitchell and Jackson Nichols | Construction Law Now Blog Most jurisdictions have prompt payment statutes requiring timely payments to contractors on construction projects. Washington, DC enacted its own statute in 2013 and recently updated it to clarify the common practice of setoff (which we addressed in our September 2022 post). As stated in that post, “[i]n the… Continue reading Important Update to DC’s Construction Prompt Payment Act
Show Me the Money: The Good Faith Dispute Exception to Prompt Payment Penalties
Garret Murai | California Construction Law Blog California has a number of prompt payment penalty statutes on the books. Among them is Civil Code section 8800 which requires project owners on private works projects to pay progress payments to direct contractors within 30 days after demand for payment pursuant to contract or be subject to prompt payment… Continue reading Show Me the Money: The Good Faith Dispute Exception to Prompt Payment Penalties
Violation of Prompt Payment Statutes is Not a Breach of Contract. But That’s Not the Most Interesting Part
Garret Murai | California Construction Law Blog While construction projects can get messy, they don’t get much messier than the next case, which, while involving a fairly limited legal issue, has such jaw dropping facts it’s worth a read if only to make you feel a bit better about your own project. The Clark Bros.… Continue reading Violation of Prompt Payment Statutes is Not a Breach of Contract. But That’s Not the Most Interesting Part
Why Careful Payment Practices Are Important in Post-Pandemic Construction Projects
Elizabeth Charnowski and Carl Pebworth | Faegre Drinker Biddle & Reath Construction project partners considering new projects in the post-COVID-19 market face some unfamiliar challenges, including challenges related to prompt payment. Escalating material costs, a still-constricted labor market and little clarity about the pandemic’s long-term impact on certain market segments (including hospitality and retail) all… Continue reading Why Careful Payment Practices Are Important in Post-Pandemic Construction Projects