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The Vermont Statutes Online
Title
09
:
Commerce and Trade
Chapter
102
:
CONSTRUCTION CONTRACTS
§
4007. Disputes; penalties; attorneys' fees
(a) Nothing in
this chapter shall prevent an owner, contractor, or subcontractor from
withholding payment in whole or in part under a construction contract in an
amount equalling the value of any good faith claims against an invoicing
contractor or subcontractor, including claims arising from unsatisfactory job
progress, defective construction, disputed work, or third-party claims.
(b) If
arbitration or litigation is commenced to recover payment due under the terms
of this chapter and it is determined that an owner, contractor, or
subcontractor has failed to comply with the payment terms of this chapter, the
arbitrator or court shall award, in addition to all other damages due and as a
penalty, an amount equal to one percent per month of all sums as to which
payment has wrongfully been withheld. An amount shall not be deemed to have
been wrongfully withheld to the extent it bears a reasonable relation to the
value of any claim held in good faith by the owner, contractor or subcontractor
against which an invoicing contractor, or subcontractor is seeking to recover
payment.
(c)
Notwithstanding any contrary agreement, the substantially prevailing party in
any proceeding to recover any payment within the scope of this chapter shall be
awarded reasonable attorney's fees in an amount to be determined by the court
or arbitrator, together with expenses. (Added 1991, No. 74, § 1, eff. Jan. 1,
1992.)