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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. The main changes came in the form of simplified notice procedures and lien filing deadlines.

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#67:  Paying Your Subcontractor's Employees

NH Construction Law

Before subcontracting any significant portion of a long term job to someone who isn’t known to be financially solvent, the wise general will ask for proof that the sub can carry the strain of weekly payroll through a monthly requisition procedure, with retainage. How does a GC protect itself? § 5.5(a)(6).)

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constructionattorneyblog: Subcontractor's Mechanics lien allowed.

Construction Lawyer

« Liability for green design | Main. Subcontractors Mechanics lien allowed where bank seized generals funds. 107108 (May 21, 2009), has ruled in favor of the subcontractor in enforcing a mechanics lien. The owner had hired a general contractor who, in turn, had subcontracted some of the work. mechanics liens.

Lien 40
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Construction Contract's arbitration provision is separable, based on

Construction Lawyer

« Florida court holds that statute of limitations does not apply to certain arbitrations | Main. provided that if arbitration is provided for in the "Contract Documents," Mortenson "in its sole discretion" may demand arbitration of any dispute under the subcontract. The mechanics liens.

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Seventh Circuit examines "pay-if-paid" provision

Construction Lawyer

« Seventh Circuit addresses duties of construction manager to injured worker; analysis of Local Rule 56.1 | Main. The court also extensively analyzed the issue of whether the subcontractor had a claim against the surety regardless of whether the principal is liabile for payment under the subcontract.

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

Construction Lawyer

« Louisiana does not give res judicata effect to an unconfirmed arbitration award | Main. | April 2, 2012), dismissed an action by a subcontractor against the general because there was an agreement to arbitrate in the subcontract. The Subcontract incorporated the terms and conditions of the Prime Contract by reference.

Claims 40
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Non-signatory bound by agreement to arbitrate

Construction Lawyer

« Florida Supreme Court follows Texas Lamar Homes | Main. When Hansen terminated the subcontract, the distribution right was affected and SIB sued Hansen. ILLINOIS APPELLATE COURT DEEMS MECHANICS LIEN COUNTERCLAIM UNTIMELY. mechanics liens. Non-signatory bound by agreement to arbitrate. The court disagreed.