The End of Pay When Paid in Virginia Construction

Mar 14, 2022
Virginia Lawyer

At Richardson Law Firm PC, we understand the complexities of the construction industry and the various legal challenges that construction companies face. Our team of experienced attorneys specializes in construction law and has in-depth knowledge of the regulations governing construction contracts with state and local governments in Virginia.

Understanding the Pay When Paid Clause

In construction contracts, the pay when paid clause outlines the timing of payments to subcontractors based on when the contractor receives payment from the owner. Historically, this clause allowed contractors to delay payment to subcontractors until they were paid by the project owner. However, recent changes in Virginia law have brought significant changes to the interpretation and enforcement of the pay when paid clause.

Changes in Virginia Law

Effective from [date], new legislation in Virginia has brought an end to the pay when paid clause in construction contracts with state and local governments. The intent behind this amendment was to protect subcontractors and ensure fair payment practices within the industry. This change has forced contractors to reevaluate their payment terms and adjust their contracts accordingly.

Implications for Contractors

The elimination of the pay when paid clause has significant implications for contractors. Previously, contractors could hold onto subcontractor payments for an extended period, which could lead to delays and financial hardships for subcontractors. The new law aims to address these issues and create a more equitable payment system for all parties involved.

The Importance of Proper Contract Drafting

With the changes in Virginia law, it is crucial for contractors to ensure their contracts comply with the new regulations. Proper contract drafting is essential to protect the rights and interests of both contractors and subcontractors. At Richardson Law Firm PC, our attorneys have extensive experience in drafting construction contracts that adhere to the latest legal requirements.

Consulting an Attorney

If you are a contractor or subcontractor operating in the construction industry in Virginia, it is vital to consult with a knowledgeable attorney to review and update your contracts. Our team at Richardson Law Firm PC can provide the guidance you need to navigate the complexities of construction law and ensure your contracts are compliant.

Enforcement and Dispute Resolution

In the event of a dispute related to payment terms or contract enforcement, our attorneys are well-equipped to represent your interests. We have a successful track record of resolving construction-related disputes through negotiation, mediation, and if necessary, litigation. Our goal is to protect your rights, minimize risks, and achieve favorable outcomes.

Experience and Expertise

With decades of combined experience in construction law, our attorneys have a deep understanding of the unique legal challenges faced by contractors and subcontractors. We stay up-to-date with the latest developments in the industry to provide accurate and informed legal advice to our clients.


The elimination of the pay when paid clause in Virginia construction contracts with state and local governments marks a significant change in the industry. As a contractor or subcontractor, it is critical to understand and comply with the new regulations to ensure fair payment practices and protect your rights. At Richardson Law Firm PC, we are committed to providing exceptional legal representation in the field of construction law. Contact us today to learn more about how we can assist you.