{"id":899699,"date":"2022-03-10T12:20:45","date_gmt":"2022-03-10T19:20:45","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=899699"},"modified":"2022-03-10T12:20:48","modified_gmt":"2022-03-10T19:20:48","slug":"pay-if-paid-ban-construction-contracts","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/pay-if-paid-ban-construction-contracts\/","title":{"rendered":"PSA: Virginia House Passes Pay-if-Paid Ban for Construction Contracts"},"content":{"rendered":"\n<p>Christopher G. Hill | <a href=\"https:\/\/constructionlawva.com\/psa-virginia-house-passes-pay-if-paid-ban-for-construction-contracts\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Construction Law Musings<\/a><\/p>\n\n\n\n<p>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.\u00a0\u00a0SB550\u00a0effectively nullifies the\u00a0\u201ccondition precedent\u201d <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/pay-if-paid-clauses-nasty-but-enforeceable\/\" target=\"_blank\" rel=\"noreferrer noopener\">pay-if-paid clauses<\/a>\u00a0that are sometimes the bane of a subcontractor\u2019s existence.\u00a0 The Virginia House of Delegates passed its own substitute bill that essentially does the same thing (<a href=\"https:\/\/lis.virginia.gov\/cgi-bin\/legp604.exe?221+ful+SB550H2\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">passed amended text here<\/a>).<\/p>\n\n\n\n<p>In short, now that the content, if not the exact wording, of the two bills, has passed, it is only a matter of time until pay-if-paid clauses are a thing of the past.&nbsp; That content states that any payment application by a subcontractor that has complied with the terms of the subcontract must be paid either within 7 days of payment by the Owner or within 45 days of the application, whichever is sooner.&nbsp; Of course, a General Contractor can withhold payment for non-compliant work regardless of this soon to be passed legislation.<\/p>\n\n\n\n<p>I will keep you posted on the final wording of the passed legislation and let you know in the event that Governor Youngkin makes any changes.<\/p>\n\n\n\n<p>Should this legislation pass, all parties to the construction contracting process will need to have their contracts reviewed by\u00a0experienced construction counsel\u00a0to assure compliance with the new law.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><strong>When one of your cases is in need of a construction expert, estimates, insurance appraisal or umpire services in defect or insurance disputes &#8211; please call Advise &amp; Consult, Inc. at 888.684.8305, or email <a href=\"mailto:experts@adviseandconsult.net\" target=\"_blank\" rel=\"noreferrer noopener\">experts@adviseandconsult.net<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>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.\u00a0\u00a0SB550\u00a0effectively nullifies the\u00a0\u201ccondition precedent\u201d pay-if-paid clauses\u00a0that are sometimes the bane of a subcontractor\u2019s existence.\u00a0 The Virginia House of Delegates passed its own substitute bill&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/pay-if-paid-ban-construction-contracts\/\">Continue reading <span class=\"screen-reader-text\">PSA: Virginia House Passes Pay-if-Paid Ban for Construction Contracts<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[9],"tags":[9895,224,7568,11641,357],"class_list":["post-899699","post","type-post","status-publish","format-standard","hentry","category-construction-contracts","tag-advise-consult","tag-construction-contract","tag-pay-if-paid-clause","tag-sb550","tag-virginia","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>PSA: Virginia House Passes Pay-if-Paid Ban for Construction Contracts - Advise &amp; 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