Virginia General Assembly Passes Law Prohibiting the Application of Pay-if-Paid Clauses on Both Public and Private Projects
During the 2022 Session, the Virginia General Assembly passed SB 550, which, among other things, prohibits the application of contingent payment or condition precedent payment clauses (known as “pay-if-paid” clauses) under most circumstances. The bill also establishes prompt payment clauses for prime contracts and subcontracts on private projects, whereas, Virginia’s Prompt Payment Act was formerly applicable only to public projects. The final language of the bill included a delayed enactment clause so that the statutory changes in SB 550 will not take effect until January 1, 2023. This delay gives project owners, developers, design professionals, general contractors, and subcontractors the opportunity […]





