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#123:  Bonding Around a Mechanic's Lien

NH Construction Law

When a general contractor or lower tier subcontractor or supplier records a mechanic’s lien attachment on property, security for the lienor’s hoped-for judgment is achieved – but often something more, and perhaps unintended, is achieved. Consolidated Electrical Distributors Inc. Eclipse Construction, Inc. ;

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No-Damage-For-Delay Provisions and Lien Waivers Remain Enforceable — and Valuable — in New York

Constructlaw

A New York appellate court recently affirmed the dismissal of a subcontractor’s counterclaims for delay damages and for unpaid amounts because they were barred by the parties’ no-damage-for-delay provision and executed lien waivers, respectively. Pizzarotti LLC, a construction manager, sued its subcontractor, X-Treme Concrete, Inc.,

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Texas ‘Retainage’ vs. ‘Reserved Funds’: What’s the Difference & Why it Matters

Levelset

Texas lien law: ‘Retainage’ or ‘reserved funds’? In 2021, Texas enacted some sweeping changes to the mechanics lien process effective on projects where the original contract was entered into on or after January 1, 2022. Making a claim against unpaid retainage/reserved funds.

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How to Get Paid on Washington State Public Projects

Levelset

Contractors on public projects aren’t allowed to file mechanics liens when payment problems arise, as both the federal and state governments explicitly prohibit private entities from claiming an interest in public property. Washington State bond claim laws. Download a Washington State Notice to Contractor form.

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Restoration: How to Manage Cash Flow While Waiting for an Insurance Check

Levelset

However, if the insurance company doesn’t pay, denies the claim, or adjusts it down, then the property owner is responsible for paying for the restoration work. This should be clearly stated in your contract. Be sure to go over payment terms with them when discussing the contract, so they can plan ahead. Learn more.

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Are Lien Waiver Requirements Consistently Enforced?

Construction Dive

By Bruce Jervis It is standard for construction contracts to require that each payment application include affidavits and lien waivers. But it would be a mistake to assume the requirement is mere “boilerplate” of little concern. A recent case out of Mississippi is an example.

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The Real Lemon in the Bunch: Understanding Pay-If-Paid Clauses in Construction Contracts

Best Practices Construction Law

Contractors have a means of shifting the risk of non-payment by the owner to its subcontractor by including a certain payment provisions in the subcontract agreement. Court of Appeals for the 4th Circuit concluded that a “pay if paid” clause in a subcontract was not ambiguous and, therefore, enforceable against the subcontractor.