Construction Law

HB 2152: Prompt Payment Act of 2025

The burdens that come with delayed payments, especially on public works projects, impact more than just the project. The contractor or design entity that cannot make payroll because a state agency has not paid a past due invoice can have catastrophic impacts on their business from delayed payment. Fortunately, the West Virginia Legislature recently enacted the Prompt Payment Act of 2025, a law that brings welcomed changes for the construction industry doing business with state agencies. This new law, effective July 8, 2025, is designed to ensure that registered and qualified vendors receive timely payment for legitimate, uncontested invoices. The core provision requires state agencies to pay these invoices within 45 days of receipt.  

The law imposes further accountability by setting clear processing timelines. Agencies receiving an invoice must take action within 10 business days, and any other state agency involved in approving or facilitating the payment must do the same. This creates a system of shared responsibility and prevents unnecessary delays from bureaucracy. Additionally, the State Auditor is now required to publish a monthly report listing noncompliant agencies on its website. This level of transparency is intended to encourage prompt compliance and highlight recurring issues within state operations.

For West Virginia contractors, the implications are significant. Timely payments from the state improve cash flow and enhance a contractor's ability to manage resources and staff efficiently. These changes also create opportunities for stronger business relationships, as both contractors and agencies can now rely on clearly defined payment expectations.

Contractors should take steps to protect themselves under this new law. First, confirm your business is properly registered and qualified to work with state agencies. Keep thorough records of all invoices and correspondence related to payments. Closely track the 45-day timeline and be prepared to follow up if payments are delayed. Most importantly, consult legal counsel if you encounter problems, as early legal intervention can encourage faster resolution.

The Prompt Payment Act of 2025 represents a positive development for the West Virginia construction industry. By understanding your rights and preparing accordingly, you can take full advantage of the protections it offers. 

HB 2942: Extension of the Design-Build Pilot Program

House Bill 2942 extends the West Virginia Department of Environmental Protection's (“WVDEP”) Design-Build Pilot Program until December 31, 2027. This program allows for the combination of design and construction phases into a single contract, streamlining project delivery and potentially reducing costs and timelines for infrastructure projects. HB 2942’s extension creates more opportunities for qualified contractors, favoring contractors who can collaborate closely with engineers and environmental consultants. As the WVDEP continues to pursue projects under this model, West Virginia-based construction firms may gain a competitive edge by aligning their services with this trend. 

SB 358: Authorization of Legislative Rules for Transportation Projects

Senate Bill 358 authorizes the Division of Highways to promulgate legislative rules related to the construction and reconstruction of state roads. This includes regulations on the use of state road rights-of-way and adjacent areas (157 CSR 06), facilitating clearer guidelines for contractors involved in state transportation projects.

HB 3429: Prequalifying Consultants for WVDEP Abandon Mine Lands

This bill establishes a formal prequalification and procurement process for engineering firms providing services under the Abandoned Mine Lands and Reclamation Act, similar to the process used to hire consultants by the WVDOT/WVDOH. Specifically, HB 3429 requires the Secretary of the West Virginia Department of Environmental Protection (WVDEP) to publish, as a Class II legal advertisement, solicitation interest from engineering firms to create a prequalified list. Engineering professionals should align their business development strategy with this structured procurement model if you aim to participate in West Virginia’s public mine reclamation efforts. Successfully obtaining the formal prequalification to be considered for AML work is an advantageous opportunity to advance your company’s footprint in the state. Legal compliance, timely submissions, and a focus on qualifications-based selection will be central to securing and executing work under this statutory regime.

EPA Grants West Virginia Authority Over Carbon Capture Projects

The U.S. Environmental Protection Agency granted West Virginia the authority to oversee carbon capture and storage projects, making it the fourth state to receive such authority. Specifically, West Virginia was granted primary enforcement authority for permitting Class VI Underground Injection Control wells under the Safe Drinking Water Act, marking a step forward for large-scale carbon sequestration initiatives, potentially leading to increased construction opportunities in this emerging sector. The WVDEP will now take over the authority to issue and oversee Class VI permits for wells designated for the sequestration of anthropogenic carbon dioxide. By transferring this responsibility to WVDEP, the state aims to capitalize on its local expertise and resources, streamlining the permitting process and aligning project approvals with West Virginia’s distinct geological and industrial conditions.

All of these legislative developments are poised to enhance project delivery methods, clarify regulatory frameworks, and invest in workforce development, collectively benefiting the construction industry in West Virginia. Contact the Construction Group at Bowles Rice for legal guidance on how these bills and other upcoming legislation may affect your company’s operations and compliance obligations.