As is always the case here in Virginia, our General Assembly has made some legislative changes that affect construction contracting.  One of these changes is an amendment to Va. Code 43-13 found in the mechanic’s lien section of the Virginia Code.

This section of the code has always required that any money paid to a contractor must first go toward paying its subcontractors, suppliers and laborers prior to being used for any other purpose.  Prior to 2020, the only remedy for violaiton of Va. Code 43-13 was to go to the local Commonwealth’s Attorney and request a prosecution of the wrongdoer.  For various reasons, including that such action did not get the subcontractor or supplier that remained unpaid under this section paid, this remedy was not often pursued except in the most egrigious cases. Continue Reading