Taking Effect on July 1, 2023: Revisions to Virginia’s Prompt Payment Law and the Statute Prohibiting the Application of Pay-if-Paid Clauses
During the 2022 Session, the Virginia General Assembly passed SB 550, which prohibited the application of contingent payment clauses (known as “pay-if-paid” clauses) under most circumstances. The bill also established prompt payment clauses for prime contracts and subcontracts on private projects. Virginia’s Prompt Payment Act was formerly applicable only to public projects. The legislative process during the 2022 session did not result in a consensus among stakeholders concerning the appropriate statutory language. This is a link to the final language of the bill, which was very different from the original bill, or the first substitute presented in committee. The bill […]





