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ASA DC Metro Supports: No “Pay if Paid” In VA for One Year

Congratulations to Ike Casey and ASA DC Metro Chapter for their advocacy efforts in support of legislation to make “pay if paid” clauses in your subcontracts on Virginia construction not enforceable if it passes the full House of Delegates.  To date, the legislation passed the House Committee on General Laws, and getting through this committee is a major hurdle that assures final passage.  Per Ike, “Chad Gill with Concreate again did a great job explaining the issue, and William Roberts with JE Liesfeld did a majority of the work to get legislators on board.”

Per Ike, “there is no law in DC or MD that expresses exactly what we are trying to do in Virginia. DC Code 27-137 is pretty close, but not explicit.  Conditions of payment may not waive the right of the sub to file mechanics lien or sue on bond.  MD Code 9-113 specifically mentions Condition Payment will not prevent collection from other sources such as an owner or bond.”