August 04, 2022

How New Va. Construction Payment Law Compares to Others

1 min

On August 4, 2022, Diz Locaria and Caleb McCallum published “How New Va. Construction Payment Law Compares to Others” in Law360. The following is an excerpt:

The Virginia Legislature recently took a broad step toward limiting the use of certain common clauses in construction subcontracts. This new legislation, effective Jan. 1, 2023, amends the state's Prompt Payment Act in the Virginia Code Section 2.2-4354 and wage theft statute in Section 11-4.6 to effectively prohibit the use of clauses, found in most construction subcontracts, which make payment to subcontractors contingent upon the prime contractor's receipt of funds. These pay-if-paid and pay-when-paid clauses are often the subject of dispute between contractors across the country. However, is Virginia's expansive approach one that is being adopted by other states, as some commentators have suggested?

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