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#123:  Bonding Around a Mechanic's Lien

NH Construction Law

Draws on a construction loan may halt. Eclipse Construction, Inc. ; HPB Construction, LLC v. v Calamar Construction Management, Inc. Otherwise, every payment bond would automatically convert every subcontract on the bonded project into a “no lien” subcontract. The MacMillin Company, LLC.

Lien 40
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#125:  Pay-if-Paid Clauses and Contractor Default

NH Construction Law

When that is the case, can a general contractor with a pay-if-paid provision in its subcontracts hide behind that provision when the reason for owner nonpayment is the general contractor’s own default? Quinn Construction, Inc. JBC Merger Sub LLC v. Tricon Enterprises, Inc. , 145, 286 A.3d 3d 1186 (2022), didn’t think so.

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#105:  Nonmutual Arbitration Agreements

NH Construction Law

Many construction contracts and subcontracts provide for arbitration of disputes. To be enforceable, contracts require “consideration,” a bargained-for exchange of value or promises of value on both sides. Harbor Construction Co. Maverick Construction Management Services, Inc. Consigli Construction Co.,

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Can Parties Knowingly Exploit Unlicensed Contractors?

Construction Dive

Under the statutes and/or case law in many states, unlicensed contractors cannot enforce the construction contract. Can they accept the benefit of the bargain, construction work performed at considerable cost, and then refuse to pay on the grounds the contractor lacked a license?

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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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#98:  Good Faith Limits on Termination for Convenience

NH Construction Law

Such a provision was part of a commercial painting subcontract in Hate to Paint, LLC v. The painting sub signed a contract to paint a multi-apartment housing project being constructed in Somersworth for a price of $500,000. Ambrose Development, LLC , No. 218-2020-CV-0585 (Rockingham County, February 26, 2021).

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Six Virtual Contractor Bookkeeper Traps

Contractor Bookkeeping

At networking events, construction contractors have asked me if we are cheaper than a virtual bookkeeper is. Contractors who outsource important construction accounting services to a "virtual bookkeeper" in an effort to save money are completely foolish because a virtual bookkeeper is usually a Bad Bookkeeper.