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B 26-0254

Contractor's Right to Stop Work for Nonpayment Amendment Act of 2025

26th Council Period (2025-2026)

The bill allows contractors to suspend work for nonpayment after 15 days, ensuring fair payment practices and protecting their rights in D.C.'s construction industry.

Public Hearing on B26-0254 View Public Hearing Record
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Bill Summary · B 26-0254

Summary of Bill B26-0254: Contractor's Right to Stop Work for Nonpayment Amendment Act of 2025

Purpose and Intent

The Contractor's Right to Stop Work for Nonpayment Amendment Act of 2025 aims to enhance protections for contractors and subcontractors in the District of Columbia by allowing them to suspend work if they have not received payment for completed work within a reasonable timeframe. This bill seeks to amend the existing Private Contractor and Subcontractor Prompt Payment Act of 2013 to ensure fair payment practices in the construction industry.

Key Provisions

The bill introduces several significant changes to current law:

  1. Prohibition of Nonpayment Clauses:

    • Contracts cannot include clauses that prevent contractors or subcontractors from stopping work due to nonpayment.

  2. Notification Procedures:

    • Contractors must provide written notice to the owner if payment is at least 15 days delinquent.
    • A minimum of 15 calendar days must pass after the initial notice before work can be suspended.
    • Contractors must also give 10 calendar days' written notice of their intent to suspend work.

  3. Payment for Deficiency Items:

    • Owners can withhold payment for "deficiency items" (work not completed to specifications) but must provide a written explanation within 14 calendar days of receiving an invoice.
    • If the owner fails to notify the contractor of deficiencies, they must pay the full invoice amount.

  4. Invoice Deficiencies:

    • Owners must notify contractors of any invoice errors within 7 business days of receipt, detailing the deficiencies.

  5. Subcontractor Rights:

    • Subcontractors are granted similar rights to suspend work for nonpayment, with a 30-day delinquency notice period and corresponding notification requirements.

Affected Parties

  • Contractors and Subcontractors: The primary beneficiaries of this bill, gaining clearer rights and protections regarding payment.
  • Property Owners and Developers: Will need to adjust contract language and payment practices to comply with the new requirements.
  • Construction Industry: Overall, the bill aims to promote fairer payment practices, potentially impacting project timelines and financial management.

Procedural Aspects

  • Introduced: May 19, 2025, by Councilmember Kenyan R. McDuffie.
  • Public Hearing: Scheduled for December 3, 2025, at 9:30 a.m. in Room 120 and via Zoom.
  • Testimony Submission: Interested parties can register to testify or submit written testimony until December 8, 2025.

Conclusion

The Contractor's Right to Stop Work for Nonpayment Amendment Act of 2025 represents a significant step towards ensuring timely payments in the construction sector, thereby protecting the rights of contractors and subcontractors. By establishing clear procedures and timelines for payment disputes, the bill aims to foster a more equitable working environment in the District of Columbia's construction industry.

Compiled from official sources — confirm details with the bill’s official record.

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