{"id":901671,"date":"2023-10-03T14:44:42","date_gmt":"2023-10-03T20:44:42","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=901671"},"modified":"2023-10-03T14:44:45","modified_gmt":"2023-10-03T20:44:45","slug":"prompt-payment-act-changes","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/prompt-payment-act-changes\/","title":{"rendered":"Changes to Construction Prompt Payment Act: What It Means for Construction Contractors Operating in DC"},"content":{"rendered":"\n<p>Arthur Dore and Jessica duHoffmann | <a href=\"https:\/\/www.pilieromazza.com\/?s=Changes+to+Construction+Prompt+Payment+Act%3A+What+It+Means+for+Construction+Contractors+Operating+in+DC\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">PilieroMazza<\/a><\/p>\n\n\n\n<p>In 2023, the Private Contractor and Subcontractor <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/prompt-payment-act-washington-dc\/\">Prompt Payment Act<\/a> of 2013<sup>1<\/sup>\u00a0(the Act) was amended to include additional protections for subcontractors on private projects by limiting a contractor\u2019s setoff rights related to claims or damages on other projects. This limitation also applies to first-tier subcontractors.\u00a0<strong><em>Below, attorneys in\u00a0<\/em><\/strong><a href=\"https:\/\/www.pilieromazza.com\/\"><strong><em>PilieroMazza<\/em><\/strong><\/a><strong><em>\u2019s<\/em><\/strong><a href=\"https:\/\/www.pilieromazza.com\/practice_area\/construction\/\"><strong><em>Construction Group<\/em><\/strong><\/a><strong><em>\u00a0summarize what changes to the Act mean for construction contractors and subcontractors working on private construction projects in DC.<\/em><\/strong><\/p>\n\n\n\n<p>The Act\u2014which governs private projects\u2014requires contractors and first-tier subcontractors to pay undisputed amounts due their subcontractors within seven days after receipt of payment for that work. An undisputed amount is defined as \u201can amount owed on a contract or a subcontract for which there is no good-faith dispute, including any retainage withheld.\u201d&nbsp; The Act also has additional protections for subcontractors, including:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>prohibiting contractual \u201cpay-if-paid\u201d provisions from waiving or abrogating a subcontractor\u2019s mechanic\u2019s lien or payment bond rights and<\/li>\n\n\n\n<li>voiding, as against public policy, contractual&nbsp;provisions pursuant to which a subcontractor purports to indemnify or hold harmless the contractor or owner against liability for damage arising out of bodily injury to persons or damage to property caused by or resulting solely from the negligence of the contractor or the owner or the contractor\u2019s or owner\u2019s agents or employees.<\/li>\n<\/ul>\n\n\n\n<p>The Act was amended to add an additional protection addressing a common term in many contracts:&nbsp;<strong><em>\u201cAny contract or subcontract provision in a contract executed after March 31, 2023, that allows a contracting party to withhold funds due under one contract or subcontract for alleged claims or damages due on another contract or subcontract is void as against public policy.\u201d<\/em><\/strong><\/p>\n\n\n\n<p>If a contractor or subcontractor withholds amounts due under a claim of setoff related to another project, it could face potential penalties. Under the Act, if a contractor or subcontractor fails to make timely payment of undisputed amounts due, it is obligated to pay interest of 1.5% per month. Moreover, contractors and subcontractors can assert claims for attorneys\u2019 fees to recover the outstanding amounts, which fees are mandatory if the contractor or subcontractor prevails.&nbsp;<\/p>\n\n\n\n<p>Construction contracting and a contractor\u2019s available remedies can be difficult to navigate and sometimes downright confusing.<\/p>\n\n\n\n<p>____________________<br><sup>1<\/sup>D.C. Code Ann. \u00a7 27A-101\u00a0<em>et seq. (formerly cited as D.C. Code Ann.<\/em>\u00a0<em>\u00a7 27-131 et seq.)<\/em><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\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\">experts@adviseandconsult.net<\/a>.<\/strong><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Arthur Dore and Jessica duHoffmann | PilieroMazza In 2023, the Private Contractor and Subcontractor Prompt Payment Act of 20131\u00a0(the Act) was amended to include additional protections for subcontractors on private projects by limiting a contractor\u2019s setoff rights related to claims or damages on other projects. This limitation also applies to first-tier subcontractors.\u00a0Below, attorneys in\u00a0PilieroMazza\u2019sConstruction Group\u00a0summarize&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/prompt-payment-act-changes\/\">Continue reading <span class=\"screen-reader-text\">Changes to Construction Prompt Payment Act: What It Means for Construction Contractors Operating in DC<\/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":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[14],"tags":[9895,11968],"class_list":["post-901671","post","type-post","status-publish","format-standard","hentry","category-construction-2","tag-advise-consult","tag-prompt-payment-act","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>Changes to Construction Prompt Payment Act: What It Means for Construction Contractors Operating in DC - Advise &amp; 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