Thoughts on construction law from Christopher G. Hill, Virginia construction lawyer, LEED AP, mediator, and member of the Virginia Legal Elite in Construction Law

Tag Archives: United States Federal Court

Don’t Leave Retainage on the Table

Public domain as a document released as part o...
Public domain as a document released as part of a proceeding in a United States Federal Court (Photo credit: Wikipedia)

Here at Musings, the contract is king and most of the time, the Virginia state and federal courts will not imply a right of action from a statute that does not specifically create one.  Furthermore, as a general rule, contracts are strictly enforced and their terms upheld absent a statute that states otherwise.

One such statute is the Virginia Public Procurement Act (“VPPA”) a statute that has it’s terms implied into public construction contracting documents by operation of law.

The Western District of Virginia federal court restated this fact in a recent opinion, South End Constructors Inc. v. Tom Brunton Masonry Inc.  In this case, a masonry contractor sued South End Constructors, Inc. for, among other things, withholding more retainage (10%) under its contract with its subcontractor than the VPPA allows (5%).  South End moved to dismiss this count of the Complaint stating that the VPPA does not create a private right of action.  The federal district court agreed and dismissed the offending count.

Of course, this case would not be particularly interesting had the Court merely stopped there.

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About Construction Law Musings

I am a construction lawyer in Richmond, Virginia, a LEED AP, and have been nominated by my peers to Virginia's Legal Elite in Construction Law on multiple occasions. I provide advice and assistance with mechanic's liens, contract review and consulting, occupational safety issues (VOSH and OSHA), and risk management for construction professionals.

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