article thumbnail

7 Things Contractors Need to Know About Retainage

Fieldwire

It is governed by the contract, which means it’s part of the agreement between two parties. On public projects in California, for example, state law caps retainage at 5% prior to completion and acceptance of the project. Mechanics lien laws have specific deadlines that contractors must follow.

article thumbnail

Virginia Joins 11 Other States Prohibiting Pay-If-Paid Clauses in Construction Contracts

Best Practices Construction Law

According to Levelset, the following states have prohibited pay-if-paid clauses: California. In other states, the prohibition has been decided by the courts, such as the California Supreme Court’s decision in Wm. It is important to understanding lien rights on a project, payment protections, and ultimately the risk of non-payment.

Virginia 118
professionals

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Joint Check Agreements On Construction Projects: What Suppliers Need To Know

Construction Law Monitor

Joint check agreements are very popular in the construction industry. In fact, many folks mistakenly believe that joint check agreements are exclusively a construction industry instrument. Perhaps the joint check agreement is the most misunderstood and dangerous document you can confront on a construction project.

article thumbnail

Direct Contractors In California Should Take Steps Now To Reduce Exposure For Unpaid Wages By Subcontractors

Construction and Infrastructure Law

Nevertheless, critics of the bill anticipate that it will ultimately increase building costs, and will only exacerbate the current shortage of affordable housing in California. Joint employment liability has been an ongoing trend in California. The bill also precludes recovery of liquidated damages or penalties.

article thumbnail

Common Law Analysis – Pay-if-paid, Pay-when-paid & Liquidating Agreements in Construction Contracts

Construction Law Monitor

Liquidating Agreement. Another technical term that is not often discussed in construction, yet is present in many construction contracts is the mechanism know as a “liquidating agreement” Sloan pg 16. Do not confuse a liquidating agreement with liquidated damages. Further reading: California Pay-if-paid Wm.

article thumbnail

EPC Contractors Procuring from Foreign Companies need to Reconsider their Contracts

Construction and Infrastructure Law

A recent California case may force engineering, procurement and construction companies doing business with foreign suppliers to reconsider—and maybe rewrite—their contracts. After Rockefeller , such contract language is no longer enforceable, at least in California. In Rockefeller Technology Investments (Asia) VII v.

article thumbnail

constructionattorneyblog: California: No contractual jury waiver

Construction Lawyer

You are not our client and we are not your attorneys unless and until you enter into a written retainer agreement with us. California: No contractual jury waiver. The California Supreme Court, on August 4, 2005, in Grafton Partners v. ILLINOIS APPELLATE COURT DEEMS MECHANICS LIEN COUNTERCLAIM UNTIMELY. mechanics liens.