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#127:  Subcontract "Flow Down" of Prime Contract Terms

NH Construction Law

Commercial construction subcontracts frequently incorporate by reference provisions of the prime contract between the owner and the general contractor, often with language requiring the subcontractor to assume toward the general contractor all duties owed by the general contractor to the owner. Brait Builders Corp. ,

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Do Prime Contractors Abuse Subcontract Retainage?

Construction Dive

By Bruce Jervis Prime contractors are frequently required to release retained subcontract payments when the project owner releases retained prime contract payments to the contractor. This obligation may be imposed by the terms of the subcontract or it may be imposed by a “prompt payment” statute.

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New Jersey Contractor Pays $400K to Settle False DBE Credit

ENR Construction

Abbonizio Contractors Inc. and its president agreed to settlement resolving alleged disadvantaged business enterprise subcontract claim on a state highway project.

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Paving a Career Path in Subcontracting

Construction Business Owner

When the conversation turns to career paths, the typical response involves working as a project manager for a general contractor (GC). Rather than general contracting, why not consider a subcontractor, specialty contractor or supplier? While that is inarguably a great career path, why not become an estimator or a superintendent?

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Subcontract Formation Frequently Not Pretty

Construction Dive

By Bruce Jervis Subcontract formation is a problematic aspect of construction contracting. Work is defined and prices are quoted before the prime, or general, contractor has even bid on the project. Prime contractors usually have “standard” subcontract forms, terms and conditions to which a subcontractor may object.

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

NH Construction Law

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

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Playing Games with Subcontracting Limitations

Construction Dive

By Bruce Jervis Many construction contracts, particularly for public works, include a limitation on subcontracting, effectively requiring the prime contractor to perform a certain percentage of the value of the contract with its own forces. This encourages hands-on management of the project by the prime.