Vermont § 4007 - Disputes; penalties; attorney’s fees
Full text of Vermont Vermont Statutes Online § 4007 — Disputes; penalties; attorney’s fees, with citation guidance and answers to common questions.
§ 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.)
Source: official Vermont text · Last verified 2026-08-27
Frequently Asked Questions About Vermont § 4007
What does Vermont Statutes Online § 4007 cover?
Section 4007 ("Disputes; penalties; attorney’s fees") is part of the Vermont Statutes Online, the codified statutory law of Vermont. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Vermont § 4007?
A common citation format is "Vermont Statutes Online § 4007" (Vermont). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Vermont law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Vermont official source linked on this page or consult a licensed Vermont attorney.
How does Vermont § 4007 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Vermont can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Vermont.