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NY Appellate Court Enforces Pay-If-Paid Provision Against Party With No Lien Rights

Constructlaw

Dewberry) contracted with the New York City Economic Development Corporations’ Build-It- Back Hurricane Sandy Program to inspect homes for structural, asbestos, and lead paint issues. The subcontract contained a pay-if-paid clause that made the city’s payment to Dewberry a condition precedent to Dewberry’s obligation to pay Entech.

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#123:  Bonding Around a Mechanic's Lien

NH Construction Law

When a general contractor or lower tier subcontractor or supplier records a mechanic’s lien attachment on property, security for the lienor’s hoped-for judgment is achieved – but often something more, and perhaps unintended, is achieved. Consolidated Electrical Distributors Inc. Eclipse Construction, Inc. ;

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No-Damage-For-Delay Provisions and Lien Waivers Remain Enforceable — and Valuable — in New York

Constructlaw

A New York appellate court recently affirmed the dismissal of a subcontractor’s counterclaims for delay damages and for unpaid amounts because they were barred by the parties’ no-damage-for-delay provision and executed lien waivers, respectively. Pizzarotti LLC, a construction manager, sued its subcontractor, X-Treme Concrete, Inc.,

Lien 52
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Texas ‘Retainage’ vs. ‘Reserved Funds’: What’s the Difference & Why it Matters

Levelset

Texas lien law: ‘Retainage’ or ‘reserved funds’? In 2021, Texas enacted some sweeping changes to the mechanics lien process effective on projects where the original contract was entered into on or after January 1, 2022. Lien for unpaid retainage. 53.025 provides some insight.

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

Best Practices Construction Law

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. Court of Appeals for the 4th Circuit concluded that a “pay if paid” clause in a subcontract was not ambiguous and, therefore, enforceable against the subcontractor.

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Are Lien Waiver Requirements Consistently Enforced?

Construction Dive

By Bruce Jervis It is standard for construction contracts to require that each payment application include affidavits and lien waivers. But it would be a mistake to assume the requirement is mere “boilerplate” of little concern. A recent case out of Mississippi is an example.

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Mayer Building Company for Subcontractors: Payment Guide & Resources

Levelset

Read a sample subcontract. Taking a closer look at the terms of a typical contract will provide you with important information about insurance, safety, dispute resolution, and more. Digging deeper into company processes for payment, change orders, lien waivers, and more will give you a sense of what to expect while working with them.