News & Analysis as of

Virginia Subcontractors

Carr Maloney P.C.

“Pay-if-paid” and “Pay-when-paid” Clauses in Virginia

Carr Maloney P.C. on

Similar to its neighbors in Maryland and the District of Columbia, Virginia has analyzed its treatment of the “pay-if-paid” or “pay-when-paid” clauses in construction contracts. Virginia previously allowed pay-if-paid clauses...more

Spilman Thomas & Battle, PLLC

Updates to the Virginia Prompt Payment Act

The Virginia General Assembly made significant amendments to general rules for construction contracts, as well as the specific rules for public entity construction contracts in the Prompt Payment Act, that largely remove the...more

Baker Donelson

Reminder: Beginning January 1, 2023, Virginia "Pay-if-Paid" Clauses No Longer Valid

Baker Donelson on

On January 1, 2023, SB 550 will take effect, invalidating pay-if-paid clauses in construction contracts in Virginia. With this change on the immediate horizon, contractors should update their contracts and policies to adapt....more

Akerman LLP

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

Akerman LLP on

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...more

Buchalter

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

Buchalter on

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

Bradley Arant Boult Cummings LLP

Virginia Is for Lovers… of Strict Contract Language: New Law Prohibits Pay-if-Paid Clauses in Construction Contracts

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,...more

PilieroMazza PLLC

New Virginia Law Prohibits “Pay-When-Paid” and “Pay-If-Paid” Provisions in Construction Contracts

PilieroMazza PLLC on

Construction contracts routinely set payment terms as “pay-when-paid” or “pay-if-paid.” These terms protect the prime contractor from bearing all the risk of nonpayment by the owner. In Virginia, however, that will not be...more

Cozen O'Connor

New Virginia Law Prohibits Pay-If-Paid Clauses in Construction Contracts

Cozen O'Connor on

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 §...more

Fox Rothschild LLP

New Virginia Law Attempts to Prohibit Pay-When-Paid Clauses in Construction Contracts

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Virginia has joined a small group of states that prohibit the inclusion of pay-when-paid clauses in private and public construction contracts. There are, however, some important ambiguities in the new legislation. ...more

Woods Rogers

Virginia’s New Construction Payment Terms (Part 2)

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This article is a continuation of Monday’s article, and we will be discussing in detail the new payment terms for all construction contracts in Virginia....more

Woods Rogers

Virginia’s New Construction Payment Terms (Part 1)

Woods Rogers on

(Part one of a two-part article series) Confused about “pay-when-paid”, “pay-if-paid” clauses and the requirements of Virginia’s Prompt Payment Act on Virginia construction contracts? A new law intending to change the...more

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