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
Tag: Virginia
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
Virginia Prohibits Pay-If-Paid Clauses and Limits Pay-When-Paid Language
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
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