The novel coronavirus (COVID-19) has thrown a wrench into the country’s longest stretch of economic growth, threatening the performance and profitability of construction projects in states with restrictive governmental regulations.
Prompt payment statutes come in a variety of “flavors,” depending on the type of project (public or private), the location of the project (i.e., which state) and the nature of the project (state or federal).
May Contractor A sue Contractor B for breach of the developer’s contract — that is, the contract between Contractor B and the developer? In Arco In ge nieros, S.A. de C.V. v. CDM Int’l Inc., 368 F. Supp. 3d 256 (D. Mass. 2019), a Massachusetts federal district court said no.