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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.

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Federal Court dismisses sub's claim against GC because of arbitration

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. Federal Court dismisses subs claim against GC because of arbitration provision. Liquidation Agreement did not supercede agreement to arbitrate. A federal court in Missouri, in LaSalle Group v.

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#67:  Paying Your Subcontractor's Employees

NH Construction Law

Before subcontracting any significant portion of a long term job to someone who isn’t known to be financially solvent, the wise general will ask for proof that the sub can carry the strain of weekly payroll through a monthly requisition procedure, with retainage. How does a GC protect itself? § 5.5(a)(6).)

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Subcontractor Default Insurance: Pros & Cons for General Contractors

Levelset

SDI helps general contractors cover the expenses that are incurred when a subcontractor fails to perform according to the terms of their agreement. In addition, SubGuard does not provide protection against mechanics liens from unpaid second-tier subs and suppliers. The insurance company reimburses ABC Builders for the claim amount.

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#66:  Labor Inefficiency Costs: Who Pays? How Much?

NH Construction Law

Sometimes this unanticipated time/space compression is the owner’s fault, in which case the general contractor/construction manager and its subcontractors will likely be entitled to increased compensation by change order or otherwise -- and to a mechanic’s lien if that increase is not paid. See Town of Bedford v. Brooks , 121 N.H.

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constructionattorneyblog: Subcontractor's Mechanics lien allowed.

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. Subcontractors Mechanics lien allowed where bank seized generals funds. 107108 (May 21, 2009), has ruled in favor of the subcontractor in enforcing a mechanics lien. University of St. Francis , No.

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Digital Builder Podcast Ep 22: How Specialty Contractors Can Navigate Contracts & Get Paid On Time

Autodesk Construction Cloud

For this reason, construction professionals must find better ways to craft and negotiate agreements. She recalls her experience speaking with a fellow attorney who had to go through a 129-page subcontract that could have been cut down to ten pages. Another common type of agreement is the Guaranteed Maximum Price (GMP) contract.