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2023 SESSION
HB 2500 Construction contracts; payment clauses to be included in certain contracts.
Introduced by: Bill Wiley | all patrons ... notes | add to my profiles | history
SUMMARY AS PASSED:
Virginia Public Procurement Act; private contracts; payment of subcontractors. Clarifies certain definitions throughout the Code for consistency between public and private construction contracts. The bill updates the notice required when a general contractor withholds all or a part of the amount invoiced by a subcontractor in a public construction contract and when an owner withholds payment from a general contractor to include language specifically identifying the contractual noncompliance, the dollar amount being withheld, and the lower-tier subcontractor responsible for the contractual noncompliance. This bill is identical to SB 1313.
SUMMARY AS PASSED HOUSE:
Virginia Public Procurement Act; private contracts; payment of subcontractors. Clarifies certain definitions throughout the Code for consistency between public and private construction contracts. The bill updates the notice required when a general contractor withholds all or a part of the amount invoiced by a subcontractor in a public construction contract and when an owner withholds payment from a general contractor to include language specifically identifying the contractual noncompliance, the dollar amount being withheld, and the lower-tier subcontractor responsible for the contractual noncompliance.
SUMMARY AS INTRODUCED:
Virginia Public Procurement Act; private contracts; payment of subcontractors. Provides that in contracts for construction, contractors shall be liable to their subcontractors for the entire amount owed to their subcontractors regardless of the contractors' receipt of payment from another party. The bill allows contractors to withhold payment from a subcontractor only for such subcontractor's noncompliance with the terms of the contract and requires the contractor to provide reasonable notice of the reason for such withholding.