Anthony LaPlaca | Seyfarth Shaw For general contractors working in Virginia, 2023 marks the end of one of the more prolific contractual rights available—the pay-if-paid defense. Until now, pay-if-paid clauses were a valid means of shifting to subcontractors the risk of owner insolvency or wrongful withholding. In the spirit of freedom of contract, Virginia courts… Continue reading New Statutory Payment Regime for Public and Private Works in Virginia
Tag: Virginia
Harrell v. Deluca: Fraud, Construction, Litigation, And The Intention To Perform
Ryan Kennedy | Dunlap Bennett & Ludwig On November 7, 2022, the United States District Court for the District of Virginia decided the case of Harrell v. Deluca, 1:20-cv-00087, which centered around a home builder and contractor who failed to successfully deliver on a major home renovation. The facts recited by the Court’s opinion bear an… Continue reading Harrell v. Deluca: Fraud, Construction, Litigation, And The Intention To Perform
Virginia Puts More Liability on General Contractors
Aaron S. Brotman | Cole Schotz Over the last few years, Virginia has enacted legislation designed to shift risk and cost from subcontractors to prime contractors on public and private contracts. 2023 will see the end of contingent payment clauses, adding to prime contractors’ responsibility to ensure payment to subcontractors’ employees. Pay-if-Paid Not Long for… Continue reading Virginia Puts More Liability on General Contractors
New Virginia Law Bans Contingent Payment Provisions in Construction Contracts
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
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