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
Tag: Pay-When-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
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?
California Precludes Surety From Asserting Pay-When-Paid Provision As Defense To Payment Bond Claim
Nicholas Korst | Ahlers Cressman & Sleight In a recent case in California, the Court of Appeals held that a surety who had issued a public works payment bond cannot rely on the “Pay-When-Paid” provision in the subcontract as a defense against the subcontractor’s claim against the payment bond.[1] The case was a public works… Continue reading California Precludes Surety From Asserting Pay-When-Paid Provision As Defense To Payment Bond Claim
In California, It’s Time to Revisit Your “Pay-When-Paid” Contract Clause
Michael Barker | Snell & Wilmer In California, the “pay-when-paid” contract language typically found in general contractor’s subcontractor agreement may no longer be enforceable. A contract provision requiring a subcontractor to wait until the general contractor concluded its litigation with the owner before it could seek payment on a payment bond was held unenforceable as… Continue reading In California, It’s Time to Revisit Your “Pay-When-Paid” Contract Clause