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Virginia Joins 11 Other States Prohibiting Pay-If-Paid Clauses in Construction Contracts

Best Practices Construction Law

Let’s cut to the chase—Virginia has joined 11 other states that have expressly prohibited “pay if paid” clauses in construction contracts. Many require more than just “pay-if-paid” language in the parties’ contract. According to Levelset, the following states have prohibited pay-if-paid clauses: California. North Carolina.

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Can Restoration & Remediation Contractors File a Mechanics Lien?

Levelset

The variety of services they provide can create a lot of confusion around their right to file a mechanics lien if they don’t get paid. In an attempt to make things clearer, let’s look at what type of work restoration and remediation contractors can file a lien for — and what type of work is less likely to be protected.

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7 Things Contractors Need to Know About Retainage

Fieldwire

It’s fairly common, especially on commercial and public construction projects, and typically ranges from 5 - 10% of the total contract price. So on a $100,000 contract with 10% retainage, the contractor doesn’t have to fork over ten grand at the beginning. Instead, the contractor will deduct the retainage from each payment application.

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California Lien Law In For A Change…

Construction Law Monitor

Over the past few years the California Legislature has been tinkering with its construction lien laws, both public an private. As of July 1, 2012 the governing statutes will be assigned to new numbers and a new section of the California Civil Code. Nevertheless, many have happened and more changes are set to come shortly.

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How Do You Price a Mechanic’s Lien?

Construction Dive

By Bruce Jervis A mechanic’s lien is a contractor’s best form of payment security on a private construction project. State lien statutes specify the timely steps a contractor must take, from notice to filing to foreclosure. A California court recently addressed this question. The court said no. The court said no.

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EPC Contractors Procuring from Foreign Companies need to Reconsider their Contracts

Construction and Infrastructure Law

A recent California case may force engineering, procurement and construction companies doing business with foreign suppliers to reconsider—and maybe rewrite—their contracts. Article 10 of the Convention allows contracting states to permit service by mail; and it allows them to object to service by mail. In the U.S.,

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Direct Contractors In California Should Take Steps Now To Reduce Exposure For Unpaid Wages By Subcontractors

Construction and Infrastructure Law

Nevertheless, critics of the bill anticipate that it will ultimately increase building costs, and will only exacerbate the current shortage of affordable housing in California. Joint employment liability has been an ongoing trend in California. The bill also precludes recovery of liquidated damages or penalties.