Nicholas Morello and Jackson Nichols | Cohen Seglias Pallas Greenhall & Furman 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 contracting with the contractor shall… Continue reading New Virginia Law Bans Contingent Payment Provisions in Construction Contracts
Tag: Pay-if-Paid Clause
PSA: Pay If Paid Ban Goes into Effect on January 1, 2023
Christopher G. Hill | Construction Law Musings I have written a couple of times here at Musings regarding the new pay-if-paid legislation passed by the General Assembly last session. While the statute has some inconsistencies and a working group has made some recommendations, the legislation as passed will go into effect on January 1, 2023, without any changes (at least… Continue reading PSA: Pay If Paid Ban Goes into Effect on January 1, 2023
Subcontract Payment Provisions Mean Exactly What They Say in Connecticut
Bill Wilson | Construction Law Zone 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 work performed when the subcontract includes a “pay-if-paid” provision. A pay-if- paid provision that makes an owner’s payment… Continue reading Subcontract Payment Provisions Mean Exactly What They Say in Connecticut
Not If, But When: Newly Enacted Virginia Legislation Bans “Pay-If-Paid” Clauses In Construction Contracts
Joseph A. Figueroa and Thomas E. Minnis | ConsensusDocs Recently passed legislation in Virginia is likely to dramatically change contractual relationships between prime contractors and subcontractors in the Commonwealth. Abrogating well-established common-law principles set forth by the Supreme Court of Virginia, on April 27, 2022, the Virginia General Assembly, after receiving input from Virginia Governor… Continue reading Not If, But When: Newly Enacted Virginia Legislation Bans “Pay-If-Paid” Clauses In Construction Contracts
Final Thoughts on New Pay If Paid Legislation in VA
Christopher G. Hill | Construction Law Musings This past General Assembly session, and after a governor’s amendment and with the convening of a study group, a new statute banning so-called “pay-if-paid” clauses from enforcement was passed. Some of the key features of the legislation are as follows: It does not take effect until January 1, 2023, and,… Continue reading Final Thoughts on New Pay If Paid Legislation in VA