News & Analysis as of

Payment Terms Construction Project

Phelps Dunbar

You Can Pay Me Now, or…

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The Utah Court of Appeals delivered a significant ruling – including its length, approximately 12,500 words – underscoring the critical importance of adhering to contract provisions, particularly regarding payment terms in...more

Stoel Rives LLP

New Law Requires Timely Payment of Undisputed Change Order Claims

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RCW 39.04.360, effective June 6, 2024, sets forth protections and assurances of payment for contractors, subcontractors, and suppliers that perform undisputed changed or additional work on both public and private construction...more

Troutman Pepper Locke

PA Appellate Court Issues Strong Reminder: CASPA’s Fee-Shifting Mechanism Applies to Subcontractors, Contractors, and Owners Who...

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SDSP, LLC v. Attias, 2023 Pa. Super. Unpub. LEXIS 1518 - The Superior Court of Pennsylvania vacated a multimillion-dollar award to subcontractors arising from a payment dispute, and remanded the matter to the trial court...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

Sands Anderson PC

The End of “Pay When Paid” in Virginia Construction Contracts with State and Local Governments

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“Pay When Paid” or “Pay if Paid” clauses in subcontracts have long been a thorn in the side of subcontractors. If Governor Youngkin signs into law a new bill that passed in both houses of the Virginia General Assembly, those...more

BCLP

The new security of payment regime in Hong Kong – key issues to consider before its implementation

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With the Hong Kong Development Bureau’s (DevB) contractual security of payment regime coming into effect from 31 December 2021 (the SOP regime), we now examine some important challenges which facing the Hong Kong construction...more

Vinson & Elkins LLP

Getting Paid: Mitigating Non-Payment Risks And Deploying “Self-Help” Remedies Under UAE Law

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One of the biggest risks on any construction project is non-payment. This article sets out contractual measures to mitigate non-payment risks and describes “self-help” remedies to obtain payment under United Arab Emirates...more

BCLP

Security of Payment in Hong Kong - pilot programme for public works contracts

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As the old saying holds, cash-flow is the life blood of the construction industry. In 2021, Hong Kong looks set to join Singapore, Australia and other jurisdictions in implementing a Security of Payment regime to...more

Buchalter

That’s A Goocher: SD Court Finds Enforceable Construction Contract Despite Lack of Time Component

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What’s a goocher?  If you saw the movie, Stand By Me, then you know exactly what I mean.  And there are times when parties to a construction contract face a goocher. ...more

White & Case LLP

Construction contracts: who bears the risk of cost overruns?

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Construction contracts may be priced in a number of ways. For most contracts, even those which are "fixed price", there is usually scope for cost/price variability. Four cases from December 2020 highlight some of the...more

Gray Reed

Mechanic’s Liens For Design Professionals: A Powerful Payment Collection Tool

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In these unprecedented times, every bit of revenue is critical to the continued operation of nearly every business operating within the construction industry. Fortunately, there are a myriad of remedies to aide collection...more

Jones Day

Amendments to Queensland Security of Payment Legislation

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The security of payment regime in Queensland has undergone significant reform in recent years. Since the introduction of the Building Industry Fairness (Security of Payment) Act 2017 (Qld), the regime has remained the subject...more

Cohen Seglias Pallas Greenhall & Furman PC

[Webinar] WPA NECA: Prompt Payments – How CASPA and Other State Laws Afford Contractors Protections - November 17th, 11:00 am -...

2018 saw the enactment of important changes to CASPA, a Pennsylvania law that helps contractors and subcontractors enforce their contractual payment terms. In this Western Pennsylvania Chapter of NECA webinar, Matt Gioffre,...more

Buchalter

Not Just An Old Wives’ Tale: Negotiating “Paid In Full” Check Binds Contractor

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Long before I was an attorney, I heard this tale that if you endorsed a check that had the words “PAID IN FULL” written on the check, then you were accepting the check as full payment of whatever was owed. But I have never...more

Jones Day

Security of Payment Legislation in Australia

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Australia-wide, companies are navigating the uncertainties arising from COVID-19. Our previous White Papers identified the risks arising for construction projects and observed that the fallout is likely to give rise to...more

Miles Mediation & Arbitration

[Webinar] Construction ADR Webinar: Residential & Multi-Family Construction Disputes: Is There A Practical Solution? - September...

Join Miles mediator and arbitrators Jennifer Grippa and David Matthews, along with Frank Brown, partner in Weissman Law and General Counsel of the Greater Atlanta Home Builders Association, Inc., Jerry Warshaw, Founder and...more

Buchalter

Lump Sum or Cost-Plus Contract: You Can’t Have It Both Ways

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It goes without saying that in the world of construction contracts … words matter! There is language in the Goes decision that a cost-plus contract imposes upon the contractor an implied duty to incur reasonable and proper...more

Farrell Fritz, P.C.

Think Before You Speak: Words and Actions Can Bind You Beyond The Terms of a Previously Agreed Upon Subcontract Agreement

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In a recent case before Justice Andrea Masley, Corporate Electrical Technologies, Inc. v. Structure Tone, Inc. et al., Plaintiff Corporate Electrical Technologies, Inc. (“CET”), a subcontractor, was hired by Structure Tone,...more

Buckingham, Doolittle & Burroughs, LLC

Dear YouDig? Unfair retainage

Dear YouDig?, We are finishing up a contract to start a piece of a big project. The owner is pushing for a 10 percent retainer of all of our payments. It does not seem fair as most of our costs are front loaded and most of...more

Troutman Pepper Locke

Ohio Federal Court Declines to Dismiss Action Against the Officer of a General Contractor Who Allegedly Submitted False...

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Decker Constr. Co. v. Wesex Corp., No. 2:18-cv-727, 2019 BL 232653 (S.D. Ohio June 24, 2019) - In Decker Construction Co. v. Wesex Corporation, the United States District Court for the Southern District of Ohio declined to...more

Troutman Pepper Locke

Recent Decisions Recognize Limits on Lien Amounts Properly Includable Under Michigan and Connecticut Lien Statutes

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Lost profits, not part of unpaid contract balance, may be recoverable as consequential damages in contract claim, but cannot be included in lien. TSP Services Inc. v. National-Standard, LLC, 2019 BL 340267 (Mich. Ct. App....more

Bricker Graydon LLP

When are damages based on unjust enrichment appropriate?

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Ohio courts have long been in agreement that “[i]t is clearly the law in Ohio that an equitable action in quasi-contract for unjust enrichment will not lie when the subject matter of that claim is covered by an express...more

Barnea Jaffa Lande & Co.

Guidelines for Standardization of Contracts and Tenders of Infrastructure Companies in the Area of Transportation

In light of the rise of investments in transportation projects, the Accountant General of the Ministry of Finance, the Director General of the Ministry of Transport, and the Manager of the Government Companies Authority...more

Jackson Walker

Rebuilding: Construction Considerations in the Wake of Disaster

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Southeast Texas has started to move from immediate recovery, including evacuations and draining of flood waters, to removal of water-damaged materials in homes and business and preliminary efforts to start rebuilding....more

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