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

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______________________________ 1
Councilmember Kenyan R. McDuffie 2
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A BILL 7
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COUNCIL OF THE DISTRICT OF COLUMBIA 10
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To amend the Private Contractor and Subcontractor Prompt Payment Act of 2013 to prohibit clauses in 14
construction contracts that preclude contractors or subcontractors from stopping work if they 15
have not been paid for completed work within a reasonable timeframe, to establish a 16
procedure and minimum timeline for contractors and subcontractors to provide notice of 17
nonpayment and intent to suspend work, to establish notification requirements and timelines 18
for owners, contractors, and subcontractors to withhold payment for deficient items, to require 19
non-deficient items to be paid according to the District's prompt pay statute, and to require 20
owners, contractors, and subcontractors to notify other contractors or subcontractors of errors 21
in an invoice and to provide an explanation of the errors. 22
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BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this act 24
may be cited as the "Contractor's Right to Stop Work for Nonpayment Amendment Act of 2025". 25
Sec. 2. The Private Contractor and Subcontractor Prompt Payment Act of 2013, effective 26
November 5, 2013 (D.C. Law 20-34; D.C. Official Code§ 27A-101 et seq.), is amended as follows: 27
(a) Section 2 (D.C. Official Code§ 27A-101) is amended as follows: 28
(1) Paragraph (1) is redesignated as paragraph (1A) 29
(2) A new paragraph (1) is added to read as follows: 30
“(1) Billing period” means a payment cycle agreed to by the parties or, in the absence of 31
an agreement, the calendar month within which work is performed.”. 32
(3) A new paragraph (2A) is added to read as follows: 33
“(2A) “Deficiency item” means work performed but which an owner, contractor, or 34
subcontractor, or any inspector authorized by an owner, contractor, or subcontractor, will not certify as 35
being completed according to the specifications of the contract.”. 36

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(b) Section 3 (D.C. Official Code§ 27A-102) is amended as follows: 37
(1) A new subsection (d) is added to read as follows: 38
"(d) A contract provision that creates a default by the contractor for suspending work 39
when the contractor has not received payment pursuant to subsections(a), (b), and (c) of this section, or 40
has the effect of prohibiting a contractor from suspending work for a violation of this act is against 41
public policy and is void and unenforceable.". 42
(c) Section 4 (D.C. Official Code§ 27A-103) is amended to read as follows: 43
(1) The lead-in language is redesignated as (a). 44
(2) New subsections (b), (c), and (d) are added to read as follows: 45
"(b)(l) If payment is not received by a contractor within the deadlines established by § 46
27A-102 subsections(a), and (c), the contractor shall have the right to suspend performance of any 47
work, without penalty, until payment is received according to the terms of the contract. 48
"(2) A contractor may suspend performance for a violation of this act only if: 49
"(A) The contractor provides written notice to the owner or the owner's 50
authorized agent, via electronic mail or postal service, stating that the payment is at least 15 days 51
delinquent according to the deadlines established by subsections (a) or (c) of this section; 52
"(B) At least 15 calendar days have passed since the written notice in 53
subparagraph (A) of this paragraph was sent; and 54
"(C) The contractor has provided at least 10 calendar days' written notice, via 55
certified mail, of the contractor's intent to suspend performance to the owner or the owner's authorized 56
agent. 57
"(c)(1) An owner may withhold payment for deficiency items or disputed amounts 58
according to the terms of a construction contract. Notwithstanding the above, the owner shall pay the 59
contractor according to the provisions of this act for any items that appear on the invoice or payment 60
request and have been satisfactorily completed or are undisputed. 61
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"(2) If an owner withholds payment from a construction contractor for a 62
deficiency item, the amount withheld shall be reasonable and the owner shall notify the contractor of 63
the deficiency item by a written explanation of its good faith reason within 14 calendar days of the date 64
that the invoice is received. 65
"(A) Failure to comply with paragraph (2) shall constitute a waiver of the 66
basis to withhold payment and necessitate payment of the contractor in full for the invoice. 67
"(d)(1) If an invoice is filled out incorrectly or incompletely by the contractor or if there 68
is any other defect or impropriety in an invoice or payment request, the owner shall give written notice 69
to the contractor within 7 business days of receipt of the invoice or payment request. The notice shall 70
plainly list any deficiencies contained in the contractor's invoice or payment request. 71
"(2) Pursuant to § 27A-102(a), (c) and subsection (c) of this section, shall not 72
apply until such time as the contractor resubmits an invoice or payment request that cures all 73
deficiencies listed in the notice required by paragraph (1) of this subsection. 74
(c) Section 6 (D.C. Official Code§ 27A-105) is amended as follows: 75
(1) The lead in language is designated as paragraph (b) 76
(2) New subsections (a-1), (a-2), (a-3), (a-4), and (a-5) are added to read as follows: 77
"(a-1) A contract provision that creates a default by the contractor for suspending work 78
when the contractor has not received payment pursuant to§ 27A-102 subsections(a), (b), and (c), or has 79
the effect of prohibiting a contractor from suspending work for a violation of this act is against public 80
policy and is void and unenforceable.". 81
"(a-2) Any contract provision which creates a default by the subcontractor for 82
suspending work under the contract when the contractor has received payment pursuant to subsection 83
(a) of this section or has the effect of prohibiting a subcontractor from suspending work under a 84
contract is against public policy and is void and unenforceable.". 85
"(a-3)(1) If payment is not received by a subcontractor within the deadlines established 86
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by § 27A-104 subsections(a), the subcontractor shall have the right to suspend performance of any 87
work, without penalty, until payment is received according to the terms of the contract. 88
"(2) A subcontractor may suspend performance for a violation of this act only if: 89
"(A) The subcontractor provides written notice to the owner or the 90
owner's authorized agent, via electronic mail or postal service, stating that the payment is at least 30 91
days delinquent according to the deadlines established by subsection (a) of this section; 92
"(B) At least 30 calendar days have passed since the written notice in 93
subparagraph (A) of this paragraph was sent; and 94
"(C) The subcontractor has provided at least 10 calendar days' written 95
notice, via certified mail, of the subcontractor's intent to suspend performance to the owner or the 96
owner's authorized agent. 97
"(a-4)(1) A contractor or subcontractor may withhold payment for deficiency items or 98
disputed amounts according to the terms of the construction contract. 99
"(2) If a contractor or subcontractor withholds payment from a subcontractor for 100
a deficiency item, the amount withheld shall be reasonable, and the owner shall notify the subcontractor 101
of the deficiency item by a written explanation of its good faith reason within 14 calendar days of the 102
date that the invoice is received. 103
"(A) Failure to comply with paragraph (2) shall constitute a waiver of the 104
basis to withhold payment and necessitate payment of the subcontractor in full for the invoice. 105
"(a-5)(1) If an invoice is filled out incorrectly or incompletely by the subcontractor or if 106
there is any other defect or impropriety in an invoice or payment request, the contractor or 107
subcontractor shall give written notice to the subcontractor within 7 business days of receipt of the 108
invoice or payment request. The notice shall plainly list any deficiencies contained in the 109
subcontractor's invoice or payment request. 110
"(2) Pursuant to § 27A-104(a) and (a-2) of this section, this shall not apply until 111
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such time as the subcontractor resubmits an invoice or payment request that cures all deficiencies listed 112
in the notice required by paragraph (a-5)(1) of this section. 113
Sec. 3. Fiscal impact statement. 114
The Council adopts the fiscal impact statement in the committee report as the fiscal impact 115
statement required by section 4a of the General Legislative Procedures Act of 1975, approved October 116
16, 2006 (120 Stat. 2038; D.C. Official Code§ 1-301.47a). 117
Sec. 4. Effective date. 118
This act shall take effect following approval by the Mayor (or in the event of veto by the Mayor, 119
action by the Council to override the veto), a 30-day period of congressional review as provided in 120
602(c)(2) of the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 813; D.C. 121
Official Code§ 1-206.02(c)(l)), and publication in the District of Columbia Register. 122