Contractors to subcontractors; prompt payment. (SB627)

Introduced By

Sen. Jill Holtzman Vogel (R-Winchester)


Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law


Prompt payment by contractors to subcontractors. Provides that contracts under the Virginia Public Procurement Act shall include a payment clause requiring the contractor to pay a subcontractor within seven days after receipt of amounts paid to the contractor by the state agency or locality. Under current law, the contractor is allowed to either pay the subcontractor or notify the state agency or locality and subcontractor of his intention to withhold all or a part of the subcontractor's payment with the reason for nonpayment. The bill also provides that nonresidential construction contracts entered into after July 1, 2020, are deemed to include an interest clause obligating the general contractor to pay interest to the subcontractor on all amounts owed by the contractor that remain unpaid after seven days. In addition, the bill provides that payment by a public body or private owner to a contractor shall not be a condition precedent for payment to a subcontractor, and payment by a contractor to a subcontractor is not a condition precedent for payment to any other subcontractor. Read the Bill »


12/04/2020: Failed to Pass in Committee


01/07/2020Prefiled and ordered printed; offered 01/08/20 20105094D
01/07/2020Referred to Committee on General Laws and Technology
01/14/2020Impact statement from DPB (SB627)
02/05/2020Continued to 2021 in General Laws and Technology (14-Y 0-N) (see vote tally)
12/04/2020Left in General Laws and Technology