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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 v. X-Treme Concrete Inc. , 3d 487 (N.Y.

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

Constructlaw

3d 55 (1st Dep’t 2022) The New York Supreme Court Appellate Division recently affirmed a ruling enforcing a pay-if-paid provision. 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.

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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. Aetna Cas. &

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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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Do Contractors Speak from Both Sides of Their Mouths?

Construction Dive

A recent example arose on a VA project in New York. The contractor defaulted the sub for failure to maintain the subcontract schedule. Consequently, it may be advantageous to represent things one way to the owner and another way to the sub. Yes, contractors occasionally speak out of both sides of their mouths.

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#75:  Recovery for Defective Work After Termination for Convenience

NH Construction Law

Many contracts specify that an owner may terminate a contractor, and many subcontracts specify that a contractor may terminate a subcontractor, either for cause (i.e., v City of New York , 228 A.D.2d for breach) or for “convenience” (i.e., without breach). Cambridge Square Condominiums , 42 A.D.3d 3d 905, 839 N.Y.S.2d

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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.