Updates

New statute has power to nullify lien waivers in Virginia

Posted on July 1, 2015
Posted in Updates

Effective July 1, 2015, any provision of a construction contract or lien waiver that “waives or diminishes” the payment bond or mechanic’s lien rights of a subcontractor, lower-tier subcontractor or material supplier before services are rendered is “null and void” in Virginia.  The new language in Va. Code § 11-4.1:1 and Va. Code § 43-3 […]

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Contractor’s failure to provide project accounting leads to criminal conviction under Va. Code § 43-13

Posted on June 11, 2015
Posted in Updates

Violation of Va. Code § 43-13 leads to criminal, not civil, liability. Under § 43-13, when a contractor receives money from an owner to pay subcontractors, he cannot use the money for any other purpose. In Holloway v. Commonwealth, owners paid a contractor $422,000 towards a new home, but after five suppliers and subcontractors went […]

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Western District of Virginia narrowly construes Virginia’s anti-indemnification statute

Posted on June 11, 2015
Posted in Updates

Rental companies may now rest easier in indemnity cases in Virginia.  In RSC Equipment Rental v. Cincinnati Ins. Co., the Western District of Virginia denied a general contractor’s motion to dismiss where the contractor sought to avoid indemnifying a forklift supplier by invalidating its indemnity clause.  Under Va. Code § 11-4.1, a party in a […]

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Email evidence supports time extension, defeats general contractor’s delay claim

Posted on June 11, 2015
Posted in Updates

Don’t delete a good email. In United States ex rel. Engineered Services v. T.H.R. Enterprises, a subcontractor defeated a general contractor’s delay claim and won its entire contract balance using email evidence to establish an extended completion date.  The Eastern District of Virginia federal court held that the subcontract completion date was extended to the […]

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Notice under Virginia’s Little Miller Act must be received by 90-day deadline

Posted on June 11, 2015
Posted in Updates

Notice that is mailed, but not received, by the 90-day deadline in Virginia’s Little Miller Act is untimely under Virginia law, according to a case of first impression in Norfolk Circuit Court. Subcontractors and suppliers asserting a payment bond claim on a public construction project in Virginia are required by statute to give written notice […]

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