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#96:  Payment Bond Sureties and "Pay-if-Paid" Subcontracts

NH Construction Law

If the principal is a general contractor with a “pay-if-paid” clause in its subcontracts, must a subcontractor wait for the general contractor to be paid before it can collect on a payment bond? Thus the liability of the company as surety is coextensive with that of the principal.” United States ex rel. 27, 29 (1959).

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#95:  Are Miller Act Claims Arbitrable?

NH Construction Law

Because venue provisions can be waived, courts allow Miller Act claims to be litigated in a different court selected by the parties’ contract. 106-277 at *5 (1999), tells us: “This bill does not void subcontract provisions requiring arbitration or other alternative methods of resolving disputes. Industrial Lumber Co. ,

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#116:  Termination as a Condition of Performance Bond Liability

NH Construction Law

Wrongful termination will not only be a breach of contract giving the principal a claim for damages against the obligee, but it will forfeit the protection of the bond. Conversely, not terminating also forgoes the protection of the bond – if termination is an enforceable condition of the surety’s liability. 4th 12 (1st Cir.

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Choose With Care: Tennessee Federal Court’s Prompt Payment Conclusions Turn on Choice of Law Clause

Constructlaw

Relyant subcontracted with Federal Engineers and Constructors, Inc. (FE&C). Relyant later terminated its subcontract with FE&C. FE&C’s amended complaint included a claim for violation of the federal Prompt Payment Act (PPA). FE&C’s amended complaint also included claims for violation of the Tennessee PPA.

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Subcontractor Insurance: 7 Policies Subs Should Consider for Their Business

Levelset

“If something goes wrong, liability could hit the GC’s policy, which dilutes liability insurance limits, negatively impacts their claims history, and forces them to deal with a claim that’s not really their fault.”. General liability insurance. 7 insurance policies subcontractors may need.

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NY Appellate Court Reaffirms Pay-When-Paid Provisions Are Void as Against Public Policy

Constructlaw

Arenson subsequently entered into a subcontract with Sweet to complete the Work (the Subcontract). The Subcontract contained two signature lines, one for “Sweet Construction Approval” and one for “Arenson Office Furnishings Approval.” ASD was not a party to the Subcontract. The appellate court affirmed the trial court.

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#134:  30-Day Accountings for Subcontractor/Supplier Mechanic’s Liens

NH Construction Law

The reason is not hard to fathom: under the statute “the owner is to hold back from the principal contractor the amount due the sub-contractor” to pay such claims, Cudworth v. 536, 537 (1898), and owners need to know the amount of those claims in order to do so intelligently. Bostwick , 69 N.H.

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