John Mark Goodman | BuildSmart Many subcontracts contain a catch-all provision requiring the subcontractor to do everything the prime contractor is obligated to do under the prime contract. This is known as an “incorporation” clause because it adopts or incorporates legal rights and duties spelled out elsewhere. Here is an example of an incorporation clause:… Continue reading Incorporation Clauses: Does the Subcontractor Really Assume All Obligations of the Prime Contractor?
Tag: Prime Contractors
Prime Contractor Beware, No. 3: Tis The Season, but is your Retainage Safe Under the Tree?
David K. Taylor | BuildSmart Here’s the Scenario: Try explaining the concept of “retainage” to a businessperson unfamiliar with the construction industry at your next holiday party. Here’s the typical response as she spits out her eggnog: “Wait a minute: are you telling me that when work and materials timely supplied on a private commercial project… Continue reading Prime Contractor Beware, No. 3: Tis The Season, but is your Retainage Safe Under the Tree?
Virginia Puts More Liability on General Contractors
Aaron S. Brotman | Cole Schotz Over the last few years, Virginia has enacted legislation designed to shift risk and cost from subcontractors to prime contractors on public and private contracts. 2023 will see the end of contingent payment clauses, adding to prime contractors’ responsibility to ensure payment to subcontractors’ employees. Pay-if-Paid Not Long for… Continue reading Virginia Puts More Liability on General Contractors
Prime Contractor Beware, No. 2: “Know Thy Owner”
David Taylor | BuildSmart Here’s the Scenario: After months of working with a new national developer (and providing hours of unreimbursed value engineering), you get the draft prime contract and see that the named “owner” will not be the hugely successful developer, but a specially created “limited liability company” that’s sole “asset” is the land upon… Continue reading Prime Contractor Beware, No. 2: “Know Thy Owner”
Government Involvement When Prime Contractors Fail to Pay Subcontractors
Kristi Morgan Aronica | Weitz Morgan Subcontractors who have not been paid for their goods or services as a general rule do not have the ability to seek redress from the government. Because subcontractors lack privity, their recourse lies in an action against the prime for breach of contract or other common law and statutory… Continue reading Government Involvement When Prime Contractors Fail to Pay Subcontractors