Garret Murai | California Construction Law Blog Sophisticated contractors know that in California contractual “pay when paid” provisions are enforceable but that “pay if paid” provisions are not. “Pay If Paid” v. “Pay When Paid” Provisions A “pay if paid” provision is one in which a higher tier party agrees to pay a lower tier… Continue reading “Pay When Paid” Provisions May Not Be Dead, Yet
Tag: Construction Contract
Court Provides Guidance on ‘Pay-When-Paid’ Provisions in Construction Subcontracts
Ted R. Gropman and Cindy J. Lee | ConsensusDocs On April 17, the California Court of Appeal decided Crosno Construction, Inc. v. Travelers Casualty & Surety Company of America,1 effectively narrowing the scope of enforceable “pay-when-paid” provisions in construction subcontracts to the extent the subcontractor seeks recovery against a general contractor’s payment bond surety. Although the Crosno case involved… Continue reading Court Provides Guidance on ‘Pay-When-Paid’ Provisions in Construction Subcontracts
Eighth Circuit Reverses District Court Decision Allowing Surety to Rescind Bonds for Alleged Illegal Subcontract as Premature
Lori Lange | Peckar & Abramson In a recent decision, the United States Court of Appeals for the Eighth Circuit reversed a district court’s decision holding that a surety was not required to fulfill any of its obligations under payment and performance bonds because the subcontract between the prime contractor and the subcontractor violated the… Continue reading Eighth Circuit Reverses District Court Decision Allowing Surety to Rescind Bonds for Alleged Illegal Subcontract as Premature
Don’t Be Unreasonable: Equitable Adjustment Conditioned on Government Contractor’s Proof of Reasonable Interpretation of Contract
Douglas L. Patin, Aron C. Beezley & Amandeep S. Kahlon | Buildsmart The U.S. Court of Appeals for the Federal Circuit, in U.S. Army Corps of Engineers v. John C. Grimberg Co., Inc., recently reversed an Armed Services Board of Contract Appeals (ASBCA) decision that a federal contractor was entitled to an equitable adjustment on a… Continue reading Don’t Be Unreasonable: Equitable Adjustment Conditioned on Government Contractor’s Proof of Reasonable Interpretation of Contract
Why Every Lawyer in the Construction Industry Should Pay Attention to Level 10 Construction v Sea World LLC
Christopher M. Wise | Forum on Construction Law “We will not process outstanding payments to contractors or subcontractors until the pandemic restrictions are lifted.” Since the pandemic began, I have wondered what courts across the country would do when businesses started breaking contractual obligations and blaming, or using, pandemic restrictions as their defense. Most lawyers… Continue reading Why Every Lawyer in the Construction Industry Should Pay Attention to Level 10 Construction v Sea World LLC