District Of Columbia Council Bill B260254

District Of Columbia 2025-2026 Regular Session

• Introduced: 5/19/25
• Refer: 6/3/25
• Refer: 1/6/26
• Refer: 1/9/26

Caption

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

Summary

This bill amends the District of Columbia’s Private Contractor and Subcontractor Prompt Payment Act of 2013 to strengthen prompt-payment protections in construction contracting. It would make void and unenforceable any contract clause that penalizes a contractor or subcontractor for suspending work when payment has not been made within the statutory deadlines. The measure also creates a formal process for stopping work, including written notice requirements and minimum waiting periods before suspension may begin. The bill further defines “billing period” and “deficiency item,” and sets out rules for withholding payment when work is incomplete, disputed, or otherwise deficient. Owners, contractors, and subcontractors would be required to pay undisputed and satisfactorily completed items on time, provide written explanations for withheld amounts within 14 days, and notify invoice submitters of errors or omissions within 7 business days so corrected invoices can be resubmitted and processed.

Impact

If enacted, the bill would amend D.C. Code provisions governing prompt payment on construction projects, primarily affecting owners, general contractors, subcontractors, and their payment practices. It would limit the enforceability of contract terms that bar work stoppages for nonpayment, establish statutory rights to suspend performance after notice and delinquency thresholds are met, and impose clearer deadlines for disputing invoices and withholding payment for deficiency items. The bill would likely shift leverage toward contractors and subcontractors by giving them a stronger remedy for late payment while preserving owners’ and upstream contractors’ ability to withhold only reasonable amounts tied to documented deficiencies.

Sentiment

The bill’s overall policy direction is pro-contractor and pro-subcontractor, reflecting concern about delayed payment in the construction industry and the need for enforceable remedies. Even without recorded committee debate or votes in the provided materials, the text suggests an intent to improve fairness and predictability in payment disputes rather than to expand substantive project obligations. The tone of the legislation is protective and procedural, emphasizing timely payment, notice, and transparency.

Contention

The main point of contention is likely the balance between protecting contractors’ right to stop work and preserving owners’ and general contractors’ ability to manage projects and resolve disputes. Owners may view the bill as reducing contractual flexibility and increasing the risk of work stoppages, while contractors and subcontractors are likely to support it as a necessary safeguard against chronic nonpayment. Another possible area of dispute is the short notice and cure timelines for invoice defects and the requirement that withheld amounts be reasonable and explained in writing, which could be seen as burdensome by project owners but essential by payment claimants.