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#127:  Subcontract "Flow Down" of Prime Contract Terms

NH Construction Law

Commercial construction subcontracts frequently incorporate by reference provisions of the prime contract between the owner and the general contractor, often with language requiring the subcontractor to assume toward the general contractor all duties owed by the general contractor to the owner. In L & B Construction Co, v.

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#105:  Nonmutual Arbitration Agreements

NH Construction Law

Many construction contracts and subcontracts provide for arbitration of disputes. 2000) (“We adhere to our view that one-sided agreements to arbitrate are not favored.”). 2000) (“We adhere to our view that one-sided agreements to arbitrate are not favored.”). Harbor Construction Co.

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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? No New Hampshire case has yet considered whether the same result obtains under state law, but the same logic applies.

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#88   Battle of the Forms: When Is There an Enforceable Contract?

NH Construction Law

When contracts and subcontracts are negotiated, it is common for written drafts and redrafts to circulate between the parties, sometimes with a letter of intent to enter into a contract thrown into the mix, and sometimes with competing forms being used – a proposal or bid on one side, an expansive formal contract on the other.

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#67:  Paying Your Subcontractor's Employees

NH Construction Law

Like many states, New Hampshire law requires that if a subcontractor doesn’t pay wages to its employees, the general contractor must pay them. But even on private projects written subcontracts can reserve the right to inspect subcontractor payroll records. RSA 275:46. How does a GC protect itself? § 5.5(a)(6).)

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#98:  Good Faith Limits on Termination for Convenience

NH Construction Law

A recent New Hampshire Superior Court case applied the covenant to restrict a contractor’s right to terminate a subcontractor “for convenience” – the ultimate exercise of discretion – before the subcontractor even starts work, simply in order to try to obtain a better price. Ambrose Development, LLC , No.

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#75:  Recovery for Defective Work After Termination for Convenience

NH Construction Law

Many contracts specify that an owner may terminate a contractor, and many subcontracts specify that a contractor may terminate a subcontractor, either for cause (i.e., Steelwood Construction, Inc. , How New Hampshire courts will rule on the matter will undoubtedly depend on the precise clause at issue. without breach).