article thumbnail

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

NH Construction Law

A couple of years ago I blogged ( #101 ) on “pay-if-paid” clauses, which make a general contractor’s receipt of payment from the owner a prerequisite – a “condition precedent,” in legal terms – to its obligation to pay subcontractors. JBC Merger Sub LLC v. Tricon Enterprises, Inc. , 145, 286 A.3d

article thumbnail

Can Parties Knowingly Exploit Unlicensed Contractors?

Construction Dive

To be blunt, they are not legally entitled to payment for their work, no matter how outstanding that work may have been. 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?

article thumbnail

#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. Some of them give just one of the parties an option to require arbitration. See DiMercurio v. 3d 71, 81 (1st Cir.