Vermont Statutes Annotated
Vt. Stat. Ann. tit. 09, § 4007 (2026)
Disputes; penalties; attorney’s fees
✓ current as of May 2026
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(Cite as: 9 V.S.A. § 4007)
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§ 4007. Disputes; penalties; attorney’s 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.)
Notes of Decisions
Cited in 36
cases (7 in the last 5 years), 2000–2026 · leading case: Burton v. Jeremiah Beach Parker Restoration & Constr. Mgmt. Corp., 2010 VT 55 (Vt. 2010).
Burton v. Jeremiah Beach Parker Restoration & Constr. Mgmt. Corp., 2010 VT 55 (Vt. 2010). “The Act, as originally enacted, stated that "[t]he provisions of 9 V.S.A. § 4007(b) and (c) shall expire on June 30, 1996.”
Fletcher Hill, Inc. v. Crosbie, 2005 VT 1 (Vt. 2005). “However, the owner’s duty to pay the contractor, including a “late fee” provision like the one at issue here, must be considered in light of 9 V.S.A. § 4007(a): Nothing in this chapter shall prevent an owner .”
Donald L. Sweet, Jr. & Preston L. Sweet v. Roy A. St. Pierre & Catherine St. Pierre d/b/a Woodlands Farms, 201 A.3d 978 (Vt. 2018). “§ 4004 ; and (3) defendants were not entitled to withhold payment because they failed to establish a good faith counterclaim under 9 V.S.A. § 4007(b), are of no avail. Those provisions of the PPA are inapplicable because no valid oral or written contract existed between the…”
Elec. Man, Inc. v. Charos, 895 A.2d 193 (Vt. 2006). “” 9 V.S.A. § 4007(a). It will always be possible to use different labels and theories to describe claims and defenses.”
Dj Painting, Inc. v. Baraw Enter., Inc., 776 A.2d 413 (Vt. 2001). “The court used 9 V.S.A. § 4007(c), which states “the substantially prevailing party in any proceeding to recover any payment within the scope of this chapter shall be awarded reasonable attorneys’ fees,” as additional support for the award to Wall only.”
EBWS, LLC v. Britly Corp., 2007 VT 37 (Vt. 2007). “" 9 V.S.A. § 4007(c). The trial court denied EBWS's request in a motion response form, without any explanation.”
Constr. Drilling, Inc. v. Engineers Constr., Inc., 2020 VT 38 (Vt. 2020). “9 V.S.A. § 4007(c). ¶ 10. After the court issued its ruling on the merits, but before judgment was entered, CDI filed a motion to reopen the evidence.”
Depot Square Pizzeria, LLC v. Dep't of Taxes, 169 A.3d 204 (Vt. 2017). “" (emphasis added)); 9 V.S.A. § 4007(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 .”
Murphy v. Stowe Club Highlands, 761 A.2d 688 (Vt. 2000). “The court rejected plaintiffs’ alternative argument that damages could be awarded under 9 V.S.A. § 4007(c), a section of the Construction Contract Act, because plaintiffs never raised that act at trial.”
Reed v. Zurn, 2010 VT 14 (Vt. 2010). “See 9 V.S.A. § 4007(a) (nothing in PPA prevents owner or contractor from withholding payment “in an amount equalling the value of any good faith claims against an invoicing contractor or subcontractor’’); id.”
Trombly Plumbing & Heating v. Quinn, 2011 VT 70 (Vt. 2011). “Relatedly, contractor argues that the trial court made insufficient findings to support a judgment in favor of homeowners on contractor’s claims. We disagree.”
Naylor v. Cusson, 2007 VT 108 (Vt. 2007). “In the absence of a final ground level, contractor was not in a position to cut off the insulation, *722 a task that would have taken very little time. ¶ 14.”
Vt. Stat. Ann. tit. 09, § 4007(a): 10 cases
Fletcher Hill, Inc. v. Crosbie, 2005 VT 1 (Vt. 2005). “However, the owner’s duty to pay the contractor, including a “late fee” provision like the one at issue here, must be considered in light of 9 V.S.A. § 4007(a): Nothing in this chapter shall prevent an owner .”
Elec. Man, Inc. v. Charos, 895 A.2d 193 (Vt. 2006). “” 9 V.S.A. § 4007(a). It will always be possible to use different labels and theories to describe claims and defenses.”
J & K Tile Co., 2019 VT 78 (Vt. 2019).
Reed v. Zurn, 2010 VT 14 (Vt. 2010). “See 9 V.S.A. § 4007(a) (nothing in PPA prevents owner or contractor from withholding payment “in an amount equalling the value of any good faith claims against an invoicing contractor or subcontractor’’); id.”
Naylor v. Cusson, 2007 VT 108 (Vt. 2007). “In the absence of a final ground level, contractor was not in a position to cut off the insulation, *722 a task that would have taken very little time. ¶ 14.”
Vt. Stat. Ann. tit. 09, § 4007(a)(c): 1 case
Kerr v. Clark (Vt. Super. Ct. 2026).
Vt. Stat. Ann. tit. 09, § 4007(b): 8 cases
Burton v. Jeremiah Beach Parker Restoration & Constr. Mgmt. Corp., 2010 VT 55 (Vt. 2010). “The Act, as originally enacted, stated that "[t]he provisions of 9 V.S.A. § 4007(b) and (c) shall expire on June 30, 1996.”
Donald L. Sweet, Jr. & Preston L. Sweet v. Roy A. St. Pierre & Catherine St. Pierre d/b/a Woodlands Farms, 201 A.3d 978 (Vt. 2018). “§ 4004 ; and (3) defendants were not entitled to withhold payment because they failed to establish a good faith counterclaim under 9 V.S.A. § 4007(b), are of no avail. Those provisions of the PPA are inapplicable because no valid oral or written contract existed between the…”
Reed v. Zurn, 2010 VT 14 (Vt. 2010). “See 9 V.S.A. § 4007(a) (nothing in PPA prevents owner or contractor from withholding payment “in an amount equalling the value of any good faith claims against an invoicing contractor or subcontractor’’); id.”
Dorr v. Lacoste (Vt. Super. Ct. 2016).
Master Plumbing v. Barlow (Vt. Super. Ct. 2024).
Vt. Stat. Ann. tit. 09, § 4007(c): 25 cases
Burton v. Jeremiah Beach Parker Restoration & Constr. Mgmt. Corp., 2010 VT 55 (Vt. 2010). “The Act, as originally enacted, stated that "[t]he provisions of 9 V.S.A. § 4007(b) and (c) shall expire on June 30, 1996.”
Fletcher Hill, Inc. v. Crosbie, 2005 VT 1 (Vt. 2005). “However, the owner’s duty to pay the contractor, including a “late fee” provision like the one at issue here, must be considered in light of 9 V.S.A. § 4007(a): Nothing in this chapter shall prevent an owner .”
Donald L. Sweet, Jr. & Preston L. Sweet v. Roy A. St. Pierre & Catherine St. Pierre d/b/a Woodlands Farms, 201 A.3d 978 (Vt. 2018). “§ 4004 ; and (3) defendants were not entitled to withhold payment because they failed to establish a good faith counterclaim under 9 V.S.A. § 4007(b), are of no avail. Those provisions of the PPA are inapplicable because no valid oral or written contract existed between the…”
Elec. Man, Inc. v. Charos, 895 A.2d 193 (Vt. 2006). “” 9 V.S.A. § 4007(a). It will always be possible to use different labels and theories to describe claims and defenses.”
Dj Painting, Inc. v. Baraw Enter., Inc., 776 A.2d 413 (Vt. 2001). “The court used 9 V.S.A. § 4007(c), which states “the substantially prevailing party in any proceeding to recover any payment within the scope of this chapter shall be awarded reasonable attorneys’ fees,” as additional support for the award to Wall only.”
Vt. Stat. Ann. tit. 09, § 4007(d): 1 case
Bircwhood Land Dev. Corp. v. Ormond Bushey & Sons, Inc. (Vt. Super. Ct. 2011).
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