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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? Thus the liability of the company as surety is coextensive with that of the principal.” United States ex rel. 27, 29 (1959).

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#116:  Termination as a Condition of Performance Bond Liability

NH Construction Law

Conversely, not terminating also forgoes the protection of the bond – if termination is an enforceable condition of the surety’s liability. Wrongful termination will not only be a breach of contract giving the principal a claim for damages against the obligee, but it will forfeit the protection of the bond. In Arch Insurance Co.

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#99:  General Contractors' OSHA Liability for Subcontractors' Violations

NH Construction Law

19-0593 (OSHRC March 8, 2021), a general contractor on a residential roofing contract entered into a subcontract that allocated safety responsibility to the installing sub and specified that the GC “cannot reasonably be expected to prevent, detect or abate violative conditions by reason of its limited role on the project.”

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Choose With Care: Tennessee Federal Court’s Prompt Payment Conclusions Turn on Choice of Law Clause

Constructlaw

Relyant subcontracted with Federal Engineers and Constructors, Inc. (FE&C). Relyant later terminated its subcontract with FE&C. Under FE&C’s theory, it was entitled to recover interest under a subcontract provision that generally incorporated all “terms and conditions … required by law.”

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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.”. General liability insurance. For example, assume you paint residential structures of all types.

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NY Appellate Court Reaffirms Pay-When-Paid Provisions Are Void as Against Public Policy

Constructlaw

Arenson subsequently entered into a subcontract with Sweet to complete the Work (the Subcontract). The Subcontract contained two signature lines, one for “Sweet Construction Approval” and one for “Arenson Office Furnishings Approval.” ASD was not a party to the Subcontract. The appellate court affirmed the trial court.

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2020 Guide to Construction Cost Estimating

Job Order Contracting

liability insurance and allowance for small tools and consumables. Liability insurance based upon local contractor rates is also added as a percentage. In addition, highly specialized subcontract items may require travel and per-diem expenses for mechanics. Material costs are either.