News & Analysis as of

Contractors Prompt Payment Construction Project

Kilpatrick

Third Circuit Affirms Kilpatrick’s Recovery of CASPA Penalties and Attorneys’ Fees Award in C.J. Hughes v. EQM

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Kilpatrick attorneys secured a significant decision for contractors and subcontractors performing work in Pennsylvania. The Third Circuit Court of Appeals affirmed District Court Judge William S. Stickman’s award of...more

Spilman Thomas & Battle, PLLC

CASPA Clash: Major Victory for Contractor in Pipeline Project Dispute as Third Circuit upholds CASPA Penalties and Fees

In a significant decision on April 17, 2024, the U.S. Court of Appeals for the Third Circuit upheld significant penalties and attorney fees awarded to C.J. Hughes Construction Company, Inc. under the Pennsylvania Contractor...more

Bressler, Amery & Ross, P.C.

New Jersey's Prompt Payment Act

In 2006, New Jersey enacted the “Prompt Payment Act,” codified at N.J.S.A. § 2A:30A-1, et seq. (the “Act” or “PPA”). The Act requires the prompt payment of contractors, subcontractors, sub-subcontractors, and material...more

BCLP

Fair Payment Practices: Recent Developments

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In this Insight, first published in PLC, Jennifer Badham discusses various attempts to address late payments and long payment terms that are a common problem in construction industry supply chains, including two recent...more

Gray Reed

It Doesn’t Pay to Delay: Prompt Payment Acts in Texas

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If an owner or general contractor fails to timely pay on a project, you may be entitled to prompt pay interest. Prompt payment acts are intended to deter late payments by general contractors and owners by enabling contractors...more

BCLP

VAT Invoices and the Final Date for Payment

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In its recent decision in Lidl Great Britain Ltd v Closed Circuit Cooling Ltd (t/a 3CL) [2023] EWHC 2243 (TCC), the TCC provided some helpful guidance around the statutory payment provisions in the Housing Grants,...more

Gray Reed

Texas Legislature Expands Suspension Rights Under the Prompt Pay Acts

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The private and public prompt pay acts both provide contractors and subcontractors with the right to stop work if an owner or upstream contractor fails to pay an undisputed amount.  With H.B. 3485, the Texas legislature has...more

Williams Mullen

New Amendments to Virginia’s “Prompt Payment” Law take effect July 1, 2023

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In 2022, the General Assembly enacted significant changes to Virginia Code §§ 2.2-4347, 2.2-4354 and 11-4.6 that mandated prompt payment by owners, contractors and subcontractors on public and private construction projects...more

Cohen Seglias Pallas Greenhall & Furman PC

Important Update to DC’s Construction Prompt Payment Act

Welcome back to our DMV Construction Law Series, where we discuss emergent legal issues important to contractors. This installment reviews the Washington, DC Construction Prompt Payment Act and its recent update concerning...more

Troutman Pepper

Appeals Court Construes Massachusetts Prompt Payment Act for First Time, Requiring Strict Compliance

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Tocci Bldg. Corp. v. IRIV Partners, LLC, 101 Mass. App. Ct. 133 (2022) - For the first time, the Appeals Court of Massachusetts has construed the Massachusetts Prompt Payment Act (the statute), requiring strict compliance...more

Burr & Forman

Virginia Joins 11 Other States Prohibiting Pay-If-Paid Clauses in Construction Contracts

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Virginia has joined 11 other states that have expressly prohibited “pay if paid” clauses in construction contracts. If you have construction projects in Virginia, then read on. If you want know whether your state prohibits...more

Robinson+Cole Construction Law Zone

Massachusetts Appeals Court Strictly Construes Prompt Payment Act

On June 7, 2022, the Massachusetts Appeals Court issued an opinion of first impression regarding the Massachusetts Prompt Payment Act, G.L. c. 149 § 29E (the “Act”).  In Tocci Building Corp. v. IRIV Partners, LLC, Appeals Ct....more

Bass, Berry & Sims PLC

Tennessee Supreme Court Clarifies Application of the Prompt Pay Act

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On June 30, the Supreme Court of Tennessee issued an opinion interpreting the retainage provisions in Tennessee’s Prompt Pay Act (the Act). The opinion has significant implications for construction projects across Tennessee....more

Snell & Wilmer

Big Projects Are Big Opportunities: But Don’t Ignore Arizona Law

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In the last several months, numerous companies have announced hefty investments in substantial construction projects in Arizona. While the investments are good news for contractors already operating in Arizona, they also...more

Pierce Atwood LLP

Time to “Pay” Attention to Payment Provisions for Construction Contracts in Massachusetts

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I know what you are thinking . . . payment provisions have ALWAYS been key components of construction projects. Owners want to understand what they are paying for and that they are not over-paying. Contractors want prompt...more

Cohen Seglias Pallas Greenhall & Furman PC

Prompt Payments: How CASPA and Other State Laws Afford Contractors Protections

Presented by Cohen Seglias attorneys Matthew Gioffre, Lisa Wampler, and Daniel E. Fierstein on November 17, 2020 for the Western Pennsylvania Chapter of NECA. 2018 saw the enactment of important changes to CASPA, a...more

Conn Kavanaugh

Superior Court Judge Sends Stern Message to Construction Industry: Respond to Pay Applications Promptly or Expect to Pay Full...

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In a business where time is money, large construction projects – at least those that are properly managed – proceed at a feverish pace. To keep up, project managers up and down the chain are often forced to communicate with...more

Cohen Seglias Pallas Greenhall & Furman PC

Prompt Payments: How CASPA and Other State Laws Afford Contractors Protections

2018 saw the enactment of important changes to CASPA, a Pennsylvania law that helps contractors and subcontractors enforce their contractual payment terms. In this Mechanical & Service Contractors Association of Eastern PA...more

Robinson+Cole Construction Law Zone

An Unfounded Lien: What’s an Owner to Do? And Can it Recover its Attorneys’ Fees?

A subcontractor has liened the property although the owner has paid in full for its work. The general contractor has disappeared. What should an owner do next? And will its attorneys’ fees be recoverable?...more

Amundsen Davis LLC

New Illinois Law Impacts Retainage For Contractors

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The Illinois legislature recently passed a law modifying the Contractor Prompt Payment Act, impacting retainage on all private projects (except residential projects involving twelve units or less). The law sets the ceiling...more

Seyfarth Shaw LLP

Illinois Expands Protections Under the Contractor Prompt Payment Act by Imposing New Restrictions on Retainage

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The Illinois Contractor Prompt Payment Act, 815 ILCS 603/1, et seq. (the “Act”) was first enacted in 2007 and designed to safeguard contractors and subcontractors on private projects by providing a mechanism to expedite...more

Cohen Seglias Pallas Greenhall & Furman PC

[Webinar] How to Get Paid: Tips and Tricks for Construction Companies in DC, Maryland, and Virginia - March 28th, 12:00pm ET

Getting paid on time is essential to running a construction business. And the bigger the job, the bigger the risk it can pose to your company. Fortunately, there are a number of tools available to help contractors,...more

Troutman Pepper

Tennessee Federal District Court Holds That Contractor May Pursue Both Breach of Contract Action in Federal Court and Lien...

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Summit Contracting Grp., Inc. v. Ashland Heights, LP, 2016 U.S. Dist. LEXIS 60662 (M.D. Tenn. May 6, 2016) - Ashland Heights, LP (“Owner”) contracted with Summit Contracting Group, Inc. (“Contractor”) to construct an...more

Troutman Pepper

Texas District Court Rejects Rail Contractor’s Delay and Prompt Payment Claims and Awards Owner More Than $3 Million

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Balfour Beatty Rail, Inc. v. The Kansas City Southern Railway Company, 2016 U.S. Dist. LEXIS 39086 (N.D. Tex., March 25, 2016) - The contractor contracted with owner to install 65 miles of railroad track, for a price of...more

Stinson LLP

Critical Amendments to Minnesota's Prompt Payment and Retainage Laws

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The Minnesota legislature recently passed a bill significantly amending Minnesota's prompt payment statute. The revised statute specifically authorizes contractors and subcontractors of any tier to stop work if they are not...more

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