Construction Law Blog

Enactment of new statutory language directly addressing the impact of pay-when-paid provisions in Virginia will become effective January 1, 2023.

New legislation now prevents Virginia contractors from withholding payment on one project to address claims or backcharges on another.

The General Assembly significantly changed the law in 2020 when it imposed potential liability on general contractors for the improper employment practices of their subcontractors. The General Assembly recently modified this law again to provide an express defense to joint liability.

We are beginning to see courts issue rulings on when the COVID-19 pandemic excuses a party from performance. Two trends have emerged in the federal decisions that we summarize in this post. Ultimately, it appears that parties cannot use COVID-19 to excuse obligations that were in their control, but they can expect a thorough and critical analysis of their position.

A recent federal case reinforces the need for strict compliance with Miller Act notice requirements to secure recovery on a payment bond.

Communications between a general contractor and sub-sub prove critical in enabling a sub-sub to recover directly from the general contractor in this new Virginia Supreme Court case.

The General Assembly, in its 2020 session, passed new legislation (codified at new Virginia Code §11.4-6 and in amended and reenacted Virginia Code § 40.1-29) that makes Virginia general contractors jointly and severally liable for its subcontractors’ employee wages if the general contractor knew or should have known that the subcontractor was not paying its employees. The new law goes into effect on July 1, 2020.

Under new OSHA guidance most employers no longer need to make work-relatedness determinations for employee cases of COVID-19 in the absence of objective evidence of work-relatedness and can focus on increased sanitization and other practices to mitigate the spread of COVID-19.

On March 30, 2020, Governor Ralph Northam issued Executive Order Number 55, titled “Temporary Stay at Home Order Due to Novel Coronavirus (COVID-19).”

States across the county have enacted Stay at Home Orders, each with varying degrees of restriction. The Virginia Stay at Home order is one of the least-restrictive Stay at Home Orders in the region.