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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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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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Subcontractor Insurance: 7 Policies Subs Should Consider for Their Business

Levelset

Medical expenses, property damage, and legal defense costs can grow quickly. An uninsured business would likely not have the financial resources to pay a large legal settlement. The bottom line is: Subcontracting work will be very difficult to secure if you carry no insurance or policies with inadequate coverages. .

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

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

Best Practices Construction Law

Like every legal question, the answer is: It depends! When you are required to strictly comply with a particular provision or legal requirement, then any departure from that requirement (no matter how insubstantial) can void the claim or provide an absolute defense. Strict or substantial compliance.

Claims 82
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#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

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Seventh Circuit examines "pay-if-paid" provision

Construction Lawyer

His book, Legal Guide to AIA Documents, published by Aspen Publishing, is in its fifth edition. The cases with which he has been involved are varied and wide-ranging and include personal injury, breach of contract, criminal defense, commercial disputes, and consumer fraud. A Legally Inclined Weblog. >.