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Construction Contracts New Legislation Prompt Payment

Carlton Fields

Florida’s New “Prompt Processing” Requirement for Construction Contract Change Orders on Public Works Projects

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Effective July 1, 2025, Chapter 2025-140, Laws of Florida, titled an “Act Relating to Construction Regulations,” enacted House Bill 683. This bill makes several changes to Florida’s construction laws, including requirements...more

BCLP

HK Security of Payment Ordinance - New Rules Regarding Setting Aside and Enforcement of Adjudication Determinations

BCLP on

On 11 July 2025, the Hong Kong Government gazetted the Construction Industry Security of Payment Rules (“Rules”). The Rules, made by the Chief Judge of the High Court under section 50 of the Construction Industry...more

Kerr Russell

Michigan’s Prompt Payment Act

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Like they warned us on Schoolhouse Rock, it is no easy feat for a bill to become enacted into law. Just ask the proposed “Prompt Pay” legislation that currently languishes in Michigan. By way of background, “Prompt Pay”...more

Hinckley Allen

Changes to the Timing for Prompt Payment on All Connecticut State Contracts are Coming – Be Prepared

Hinckley Allen on

Connecticut’s prompt payment requirements for state contracts are about to change. The Connecticut General Assembly approved the new state budget bill (House Bill 7287), which includes a significant change to Connecticut’s...more

Hinckley Allen

Private Construction Projects Impacted by Changes to NY Prompt Payment Act

Hinckley Allen on

Governor Hochul signed Senate Bill 3539, amending Section 756-a and Section 756-c of the New York General Business Law – better known as the Prompt Payment Act (“PPA”). Because the law can override portions of construction...more

Holland & Knight LLP

New York's 5 Percent Retainage Law Underscores Construction Contract Drafting

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New York Gov. Kathy Hochul on Nov. 17, 2023, signed Senate Bill S3539 (Retainage Amendment), which amended Sections 756-a and 756-c of the New York General Business Law, commonly referred to as the Prompt Payment Act. The...more

Venable LLP

New Law Sets Maximum Construction Contract Retainage at 5% in New York

Venable LLP on

On November 17, 2023, Governor Kathy Hochul signed a bill into law amending Sections 756-a and 756-c of the New York State Prompt Payment Act (N.Y. Gen. Bus. Law §756 (McKinney 2009)) governing restrictions on retainage and...more

Miller Nash LLP

[Webinar] Retainage, Back Charges, and Withholdings—Law and Best Practices in Oregon & Washington - October 24th, 9:00 am - 10:30...

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No matter your tier in the construction contracting chain, understanding the nuanced rules and procedures about retainage, back charges, and other payment withholdings is critical to managing cash flow and protecting your...more

Venable LLP

Even Federal Contractors and Subcontractors Should Pay Heed to State Law on Conditional Payment Clauses

Venable LLP on

​​​​​​​The Virginia legislature recently took a broad step toward limiting the use of certain common clauses in construction subcontracts. This new legislation, effective January 1, 2023, amends the state's Prompt Payment Act...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

Bilzin Sumberg

New Florida Law Increases Interest Rates for Late Payments for Certain Construction Services and Imposes Criminal Penalties for...

Bilzin Sumberg on

The 2021 Florida Senate Bill 378 became effective as of July 1, 2021, and implemented major changes for owners, municipalities, and other local government entities that pay contractors for construction services in Florida,...more

Tucker Arensberg, P.C.

CASPA and COVID-19 – Withholding Payments for Contracting Work

Tucker Arensberg, P.C. on

The Pennsylvania Contractor and Subcontractor Payment Act 73 P.S. § 501, et seq. (“CASPA”) was enacted to protect the right to payment of contractors and subcontractors who perform improvements on real property. CASPA...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Construction One-Minute Read: Illinois Restricts Retainage on Private Construction Projects

Every private construction project in Illinois will be affected by a new law, effective immediately. The Contractor Prompt Payment Act (815 ILCS 603/1, et seq.) was amended to restrict the use of retainage on construction...more

Dickinson Wright

Summary of Amendments to Construction Lien Act

Dickinson Wright on

In December 2017, the Ontario Legislature passed the Construction Lien Amendment Act, 2017 (the "Act"). The Act introduces significant changes to Ontario’s construction lien regime and is intended to reduce delays in...more

Snell & Wilmer

Arizona State Legislature Expands Prompt Payment to Design Professionals on Public Works Projects

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Arizona law has long protected the rights of contractors, subcontractors and suppliers to prompt payment. However, all such protections have not extended to design professionals. For example, in 2013, the Arizona Court of...more

Snell & Wilmer

Summary of California’s Prompt Payment Laws

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The California legislature has enacted a comprehensive series of prompt payment statutes that are designed to ensure the prompt payment of progress payments and retention payments to downstream contractors by imposing harsh...more

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