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
Tag: Pay-if-Paid Clause
The End of “Pay When Paid” in Virginia Construction Contracts with State and Local Governments
Terrence Graves | Sands Anderson “Pay When Paid” or “Pay if Paid” clauses in subcontracts have long been a thorn in the side of subcontractors. If Governor Youngkin signs into law a new bill that passed in both houses of the Virginia General Assembly, those clauses will be a thing of the past for projects involving the… Continue reading The End of “Pay When Paid” in Virginia Construction Contracts with State and Local Governments
PSA: Virginia House Passes Pay-if-Paid Ban for Construction Contracts
Christopher G. Hill | Construction Law Musings In a move that was much anticipated, the Virginia senate recently passed legislation barring straight pay-if-paid clauses in construction contracts between General Contractors and Subcontractors. SB550 effectively nullifies the “condition precedent” pay-if-paid clauses that are sometimes the bane of a subcontractor’s existence. The Virginia House of Delegates passed its own substitute bill… Continue reading PSA: Virginia House Passes Pay-if-Paid Ban for Construction Contracts
Contractual “Pay if Paid” and “Pay when Paid” Clauses? What is a California Construction Subcontractor to Do?
William L. Porter | Porter Law Group The Situation California Construction Subcontractors Face in Obtaining Payment: California construction subcontractors find themselves faced with a significant payment issue every time they are asked to sign a subcontract on a major project. Invariably, the subcontract the prime contractor presents to the subcontractor for signature will contain a… Continue reading Contractual “Pay if Paid” and “Pay when Paid” Clauses? What is a California Construction Subcontractor to Do?
“Pay When Paid” Provisions May Not Be Dead, Yet
Garret Murai | California Construction Law Blog Sophisticated contractors know that in California contractual “pay when paid” provisions are enforceable but that “pay if paid” provisions are not. “Pay If Paid” v. “Pay When Paid” Provisions A “pay if paid” provision is one in which a higher tier party agrees to pay a lower tier… Continue reading “Pay When Paid” Provisions May Not Be Dead, Yet