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Contract Void Ab Initio: Key Insights into the KBR vs. Corps of Engineers Affirmative Defense

Best Practices Construction Law

The proposed amendment introduces an affirmative defense, contending that Kellogg Brown & Root Services, Inc. Background: The contract in question, executed on July 9, 2013, was for the construction of an Aegis Ashore Missile Defense System site in Deveselu, Romania, with a firm, fixed-price amount of $134,211,592.

Defense 62
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#96:  Payment Bond Sureties and "Pay-if-Paid" Subcontracts

NH Construction Law

It is often said that a payment bond surety may assert all of the contractual defenses to payment enjoyed by its principal. 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?

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The Real Lemon in the Bunch: Understanding Pay-If-Paid Clauses in Construction Contracts

Best Practices Construction Law

As you may be aware, one of the greatest risks on a construction project involves the payment process. Contractors have a means of shifting the risk of non-payment by the owner to its subcontractor by including a certain payment provisions in the subcontract agreement. Turner Construction Company , the U.S.

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Subcontractor Insurance: 7 Policies Subs Should Consider for Their Business

Levelset

“If something goes wrong, liability could hit the GC’s policy, which dilutes liability insurance limits, negatively impacts their claims history, and forces them to deal with a claim that’s not really their fault.”. Medical expenses, property damage, and legal defense costs can grow quickly.

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Are ‘Pay-if-Paid’ Clauses Dead?

Construction Dive

These subcontract provisions make the prime contractor’s obligation to pay, or at least the timing of the payment, contingent upon the contractor’s receipt of payment for the sub’s work from the project owner. The court rejected this argument.

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Subcontractor’s Failure to Strictly Comply With Notice Provision Costs $200,000

Best Practices Construction Law

Tully Construction Co. , The general contractor entered into an agreement with the City of New York Department of Sanitation to construct a garage. shall be deemed a conclusive waiver by the Contractor of any and all claims for damages for delay arising from such condition. In Schindler v. For example, in Lee Masonry, Inc.

Claims 82
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Federal Court dismisses sub's claim against GC because of arbitration

Construction Lawyer

Werner Sabo is a partner at the construction law firm of Sabo & Zahn in Chicago. He is a member various professional organizations, has been an officer and director of the Chicago Chapter AIA, President of the Chicago Chapter, Construction Specifications Institute, and writes a regular construction law column for The Construction Specifier.

Claims 40