Contracts; payment clauses, right to payment of subcontractors. (SB550)

Introduced By

Sen. John Bell (D-Chantilly)


Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law


Contracts; payment clauses to be included in certain contracts; right to payment of subcontractors. Requires construction contracts awarded by state or local government agencies as well as certain private construction contracts in which there is at least one general contractor and one subcontractor to include a payment clause that obligates the contractors to be individually liable for the entire amount owed to any subcontractor with which it contracts. The bill provides that a contractor shall not be liable for amounts otherwise reducible due to the subcontractor's noncompliance with the terms of the contract; however, the contractor must notify the subcontractor in writing of the contractor's intent to withhold all or a part of the subcontractor's payment with the reason for such nonpayment. Payment by the party contracting with the contractor shall not be a condition precedent to payment to any lower-tier subcontractor. The bill also requires a payment clause to be included in any construction contract between an owner and a general contractor that requires (i) the owner to pay the general contractor within 45 days of receipt of an invoice following satisfactory completion of the contracted-for work, and (ii) a higher-tier contractor to pay a lower-tier subcontractor within the earlier of 45 days of satisfactory completion of the work for which the subcontractor has invoiced or seven days after receipt of amounts paid by the owner to the general contractor for work performed. Lastly, the bill provides that the Department of General Services shall convene the Public Body Procurement Workgroup to review whether the issue of nonpayment between general contractors and subcontractors necessitates legislative corrective action and report its findings and legislative recommendations to the General Assembly on or before December 1, 2022. Read the Bill »


Bill Has Passed


01/12/2022Prefiled and ordered printed; offered 01/12/22 22102233D
01/12/2022Referred to Committee on General Laws and Technology
01/19/2022Impact statement from DPB (SB550)
01/26/2022Senate committee, floor amendments and substitutes offered
02/02/2022Reported from General Laws and Technology with substitute (10-Y 4-N 1-A) (see vote tally)
02/02/2022Committee substitute printed 22104655D-S1
02/02/2022Rereferred to Finance and Appropriations
02/07/2022Impact statement from DPB (SB550S1)
02/09/2022Reported from Finance and Appropriations (11-Y 4-N) (see vote tally)
02/10/2022Constitutional reading dispensed (40-Y 0-N) (see vote tally)
02/11/2022Read second time
02/11/2022Reading of substitute waived
02/11/2022Committee substitute agreed to 22104655D-S1
02/11/2022Engrossed by Senate - committee substitute SB550S1
02/14/2022Read third time and passed Senate (23-Y 17-N) (see vote tally)
02/14/2022Reconsideration of passage agreed to by Senate (40-Y 0-N) (see vote tally)
02/14/2022Passed Senate (25-Y 15-N) (see vote tally)
02/21/2022Placed on Calendar
02/21/2022Read first time
02/21/2022Referred to Committee on General Laws
02/24/2022House committee, floor amendments and substitutes offered
02/24/2022Reported from General Laws with substitute (17-Y 5-N) (see vote tally)
02/24/2022Referred to Committee on Appropriations
02/24/2022Committee substitute printed 22107080D-H1
02/28/2022House committee, floor amendments and substitutes offered
02/28/2022Reported from Appropriations with amendment(s) (22-Y 0-N) (see vote tally)
03/01/2022Read second time
03/02/2022Passed by for the day
03/03/2022committee on General Laws substitute 22107080D-H1
03/03/2022Substitute by Delegate Wiley agreed to 22107429D H2
03/03/2022Floor substitute printed 22107429D-H2 (Wiley)
03/03/2022Read third time
03/03/2022Committee on General Laws substitute rejected 22107080D-H1
03/03/2022Appropriations committee amendments out of order due to rejection of General Laws
03/03/2022Substitute by Delegate Wiley agreed to 22107429D-H2
03/03/2022Engrossed by House - floor substitute SB550H2
03/03/2022Passed House with substitute (91-Y 9-N)
03/03/2022VOTE: Passage (91-Y 9-N) (see vote tally)
03/07/2022House substitute agreed to by Senate (29-Y 10-N) (see vote tally)
03/07/2022Title replaced 22107429D-H2
03/07/2022Impact statement from DPB (SB550H2)
03/10/2022Bill text as passed Senate and House (SB550ER)
03/10/2022Impact statement from DPB (SB550ER)
03/10/2022Signed by President
03/10/2022Signed by Speaker
03/22/2022Enrolled Bill Communicated to Governor on March 22, 2022
03/22/2022G Governor's Action Deadline 11:59 p.m., April 11, 2022
04/11/2022Governor's recommendation received by Senate
04/11/2022Governor's substitute printed 22108193D-S2
04/27/2022Senate concurred in Governor's recommendation (40-Y 0-N) (see vote tally)
04/27/2022House concurred in Governor's recommendation (95-Y 4-N)
04/27/2022VOTE: Adoption (95-Y 4-N) (see vote tally)
04/27/2022G Governor's recommendation adopted
04/27/2022Reenrolled bill text (SB550ER2)
04/27/2022Signed by President as reenrolled
04/27/2022Signed by Speaker as reenrolled
04/27/2022Enacted, Chapter 727 (effective 1/1/23)
04/27/2022G Acts of Assembly Chapter text (CHAP0727)