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7 Things Contractors Need to Know About Retainage

Fieldwire

Retainage is up for negotiation Retainage is not set in stone. It is governed by the contract, which means it’s part of the agreement between two parties. Every contract is negotiable, including what percentage is retained and for how long. Mechanics lien laws have specific deadlines that contractors must follow.

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The Bird Box Dilemma: When False Pay Apps and Lien Waivers Are Not Fraudulent Inducement

Best Practices Construction Law

Under Massachusetts law (like most states), in order to prevail on a claim for fraudulent inducement, a plaintiff must allege a false representation, material to the negotiations, upon which the plaintiff reasonably relied in entering into an agreement with the defendant.

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Assignment of Benefits for Contractors: Pros & Cons of Accepting an AOB

Levelset

An assignment of benefits , or AOB, is an agreement to transfer insurance claim rights to a third party. It gives the assignee authority to file and negotiate a claim directly with the insurance company, without involvement from the property owner. The AOB agreements need to be in writing. What is an assignment of benefits?

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#122:  Construction Loan Disbursement Pitfalls

NH Construction Law

Worse, the contractor or one of its unpaid subcontractors could place a mechanic’s lien on the property – which is sure to result in a breach of the owner/borrower’s loan agreement! All such contractual solutions depend on the leverage possessed by and the negotiation savvy of the parties to these arrangements.

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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. Brennan’s The Construction Contracts Book.

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Payment of Retainage with “conditions attached” Deemed Non-Payment

Best Practices Construction Law

the dispute involved the parties’ separate agreement wherein the contractor committed to pay the subcontractor for delay damages that were beyond the subcontractor’s reasonable control. In the same letter as its refusal, the contractor said it would release the retainage payment “which was pending receipt of a Waiver of Lien.

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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. Karalynn also emphasizes the importance of negotiating who takes on certain risks and liabilities. First, there’s the prime contract, which is the agreement that sets the terms between the owner and GC.