Daniel Miktus and Jeffrey G. Gilmore | Akerman On April 27, 2022, Virginia Governor Glenn Youngkin ratified amendments to two Virginia statutes, prohibiting pay-if-paid clauses in construction contracts, and limiting the effectiveness of pay-when-paid clauses in certain agreements. Pay-if-paid clauses generally provide that payment from a construction project owner to the general contractor is a… Continue reading Virginia Prohibits Pay-If-Paid Clauses and Limits Pay-When-Paid Language
Tag: Pay-if-Paid Clause
Pay-If-Paid Versus Pay-When-Paid Clauses
Lawrence M. Prosen and Josephine M. Bahn | Cozen O’Connor On April 27, 2022, Virginia Governor Glenn Youngkin signed Senate Bill 550 into law, amending a portion of the Virginia Prompt Payment Act and a component of the Virginia wage theft statute. Va. Code § 2.2-4354 and VA. Code § 11-4.6. The changes associated with the law now prohibit… Continue reading Pay-If-Paid Versus Pay-When-Paid Clauses
Virginia Is for Lovers… of Strict Contract Language: New Law Prohibits Pay-if-Paid Clauses in Construction Contracts
Amy Elizabeth Garber and Robert J. Symon | Buildsmart Virginia has joined the growing number of states that prohibit “pay-if-paid” clauses. The new law, known as Virginia Senate Bill 550, amends Virginia’s Prompt Payment Act (Va. Code § 2.2-4354) and its relatively new (July 1, 2020) wage theft statute (Va. Code § 11-4.6) and applies… Continue reading Virginia Is for Lovers… of Strict Contract Language: New Law Prohibits Pay-if-Paid Clauses in Construction Contracts
New Virginia Prompt Payment Statutes Invalidate Most ‘Pay When Paid’ Clauses
Alexander W. Burnett and Patrick A. Cushing | Williams Mullen On April 27, 2022, the Virginia General Assembly passed Senate Bill 550, which makes “pay when paid” and “pay if paid” clauses unenforceable in most circumstances and requires both public and private construction contracts to include certain payment clauses that obligate the contractors to be… Continue reading New Virginia Prompt Payment Statutes Invalidate Most ‘Pay When Paid’ Clauses
Thoughts on New Pay if Paid Legislation
Christopher G. Hill | Construction Law Musings Recently, the Virginia General Assembly closed its session having passed legislation essentially banning “pay if paid” clauses in construction contracts, both public and private. Assuming that Governor Youngkin signs the bill into law on or before his deadline of April 11, 2022, the following new requirement will be grafted into… Continue reading Thoughts on New Pay if Paid Legislation