Prompt Payments: How CASPA and Other State Laws Afford Contractors Protections
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
On Monday, June 17, 2024, the Supreme Judicial Court (“SJC”) issued its decision in Business Interiors Floor Covering Business Trust v. Graycor Construction Company, Inc., et al, which interprets the Massachusetts Prompt...more
An Act Promoting Fairness in Private Construction Contracts (the “Prompt Pay Law,” codified at M.G.L. Section 29E, Chapter149), which imposes new requirements on private construction projects, will apply to all construction...more
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
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
General Contractors may seek to condition payments to Subcontractors by using “pay-if-paid” or “pay-when-paid” clauses in their contracts. Typically, as the name suggests, pay-when-paid provisions concern the timing of...more
New York’s Prompt Pay Act, which sets the standards that govern private commercial construction contracts exceeding $150,000, was amended effective November 17, 2023. The Amendment known as Senate Bill 3539 provides two...more
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
The recent Connecticut Appellate Court decision in Electrical Contractors, Inc. v. 50 Morgan Hospitality Group, LLC, 211 Conn. App. 724 (2022), eliminated any remaining doubt regarding a subcontractor’s right to payment for...more
In life, rejection is often hard to swallow. In construction, that rejection can sometimes amount to millions of dollars. A Massachusetts court recently held that an owner’s rejection of the contractor’s payment...more
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
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
In a recent decision likely to have a significant impact upon the way private construction projects in Massachusetts are managed, the Superior Court recently construed the Massachusetts Prompt Pay Statute in the way the...more
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
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