Nevada Supreme Court Holds that Pay-If-Paid Provisions Require a Case-By-Case Analysis to Determine Their Enforceability

Petar Angelov | Bradley Arant Boult Cummings A “pay-if-paid” provision typically makes payment by an owner to a general contractor a condition precedent to the general contractor’s obligation to pay a subcontractor for work the subcontractor has performed. In the recent decision of Helix Electric of Nevada, LLC v. APCO Construction, Inc. (related to the case above),… Continue reading Nevada Supreme Court Holds that Pay-If-Paid Provisions Require a Case-By-Case Analysis to Determine Their Enforceability

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

Matthew DeVries | Best Practices Construction Law | November 22, 2019 As you may be aware, one of the greatest risks on a construction project involves the payment process. Just like my kids expect to be paid for the lemonade they sell, contractors and subcontractors expect to be paid on a timely basis once the… Continue reading The Real Lemon in the Bunch: Understanding Pay-If-Paid Clauses in Construction Contracts

Subcontractors Have Remedies, Even If “Pay-If-Paid” Provisions Are Enforced

John P. Ahlers | Ahlers Cressman & Sleight | January 23, 2019 In a recent case in Kentucky[1], a sub-tier subcontractor sued the general contractor and owner for failure to pay for extra work. At the trial, the court held the subcontractor was entitled to recover under the theories of implied contracts and unjust enrichment,… Continue reading Subcontractors Have Remedies, Even If “Pay-If-Paid” Provisions Are Enforced

Pay IF Paid: It Means What it Says

Kyle M. Doiron | Bradley | March 2018 Pay when paid clauses are common in the construction industry. A typical pay when paid clause sounds something like this: “Prime Contractor will not pay Subcontractor until Prime Contractor receives payment from Owner.” A lay person might read that and interpret it to mean that if the Prime Contractor… Continue reading Pay IF Paid: It Means What it Says

Pay-if-Paid Enforced Opening Door to Subcontractor Claim Against Owner

Katharine E. Kohm | The Dispute Resolver | February 24, 2018 In Superior Steel, Inc. v. Ascent at Roebling’s Bridge, LLC, No. 2015-SC-000204-DG, 2017 WL 6380218 (Ky. Dec. 14, 2017), a subcontractor and a sub-subcontractor sued the general contractor and owner for the failure to pay for extra work. The general contractor and owner cross-claimed against the other for, inter alia, indemnification.  At the jury… Continue reading Pay-if-Paid Enforced Opening Door to Subcontractor Claim Against Owner

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