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Real Estate Development Construction Contracts 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

Goulston & Storrs PC

Owners Beware: Massachusetts Supreme Judicial Court Underscores Strict Adherence to Prompt Payment Act

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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

Goulston & Storrs PC

Massachusetts “Prompt Pay Law” Imposes New Obligations on Project Owners and Construction Lenders

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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

Gray Reed

It Doesn’t Pay to Delay: Prompt Payment Acts in Texas

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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

Hinckley Allen

Private Construction Projects Impacted by Changes to NY Prompt Payment Act

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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

Carr Maloney P.C.

“Pay-if-paid” and “Pay-when-paid” Clauses in Maryland and the District of Columbia

Carr Maloney P.C. on

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

Robinson+Cole Construction Law Zone

NY Prompt Pay Act for Private Construction Caps Retainage at Five Percent

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

Gray Reed

Texas Legislature Expands Suspension Rights Under the Prompt Pay Acts

Gray Reed on

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

Robinson+Cole Construction Law Zone

Subcontract Payment Provisions Mean Exactly What They Say in Connecticut

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

Buchalter

Feeling Rejected? MA Court Construes for the First Time the Provisions of the Prompt Pay Act

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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

Robinson+Cole Construction Law Zone

Massachusetts Appeals Court Strictly Construes Prompt Payment Act

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

Bilzin Sumberg

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

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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

Robinson+Cole Construction Law Zone

The Massachusetts Prompt Pay Statute: A Cautionary Tale for Those Who Don’t Read the Fine Print

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

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

Robinson+Cole Construction Law Zone

An Unfounded Lien: What’s an Owner to Do? And Can it Recover its Attorneys’ Fees?

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

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