Legislation recently passed by the Massachusetts legislature will have a dramatic impact upon the Massachusetts construction industry. With this new law Massachusetts joins the majority of states restricting the enforceability of conditional payment contract clauses, also known as so-called "pay-if-paid" and "pay-when-paid" clauses, which are very common in private construction contracts. Massachusetts has also broken new ground by regulating change order processing and payment on private construction projects.
The new law becomes effective November 8, 2010, and under its terms project owners, contractors and subcontractors of any tier who fail to act in a timely manner on a pay application or a request for extra compensation will be deemed to have automatically approved the request unless they affirmatively reject it within applicable time limits. For this reason, among others, it is essential that owners and contractors understand the new law and manage its effects proactively.
The law also restricts the use of contract provisions requiring parties to defer dispute resolution until completion of the project or requiring parties to continue working despite payment being overdue.
Our experienced construction industry lawyers will discuss all aspects of the new Massachusetts legislation, including the negotiations among industry groups that preceded its passage. This program will also help you learn how your company can comply with the new rules and manage the associated risks.
Deborah S. Griffin | Senior Counsel, Construction Industry Practice Group, Holland & Knight | Boston
Paul M. James | Partner, Construction Industry Practice Group, Holland & Knight
7:30 - 8:00 a.m. | Continental Breakfast and Networking
8:00 - 9:00 a.m. | Program
Space is limited. Please register using the "Register" link above by September 14, 2010.
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