Jessica A.duHoffmann and Jonathan R. Neri | Piliero Mazza In the world of construction, it is essential for both prime contractors and lower-tier subcontractors to carefully manage financial risk when negotiating subcontract agreements. While a party’s ability to distinguish and understand pay-if-paid and pay-when-paid clauses—a critical first step in identifying financial risk—the analysis should not stop there. To protect the… Continue reading Top 10 Killer Construction Contract Clauses, Part 2: Pay-If-Paid and Pay-When-Paid
Tag: Pay-if-Paid Clause
Louisiana Legislature Grants Sureties the Right to Raise Contractor Defenses, Including “Pay-If-Paid”
Mark Frilot, Max Hadley and Mark Mercante | Baker Donelson Governor Landry recently signed into law two legislative acts that should allow Private Works Act and Public Works Act payment bond sureties to rely on defenses available to their general contractor principals in defense of sub-tier payment claims, including “Pay-If-Paid” provisions contained in the general… Continue reading Louisiana Legislature Grants Sureties the Right to Raise Contractor Defenses, Including “Pay-If-Paid”
Enforceability of Pay-if-Paid Clauses in Construction Subcontracts: Mid-Atlantic Region
Jessica duHoffmann and Jonathan Neri | PilieroMazza Pay-if-paid clauses are conditional payment provisions regularly included in construction subcontracts. The intent of these clauses is to shift the risk of loss from a prime contractor to its subcontractors by making a project owner’s payment to the prime contractor a condition precedent to the prime contractor’s obligation… Continue reading Enforceability of Pay-if-Paid Clauses in Construction Subcontracts: Mid-Atlantic Region
“Pay-if-paid” and “Pay-when-paid” Clauses in Maryland and the District of Columbia
Andrew Nagel and Kenneth Stallard | Carr Maloney General Contractors may seek to condition payments to Subcontractors by using “pay-if-paid” or “pay-when-paid” clauses in their contracts. Typically, as the name suggests, pay-when-paid provisions concern the timing of payment by the General Contractor, but, arguably, do not relieve the General Contractor from its obligation to pay… Continue reading “Pay-if-paid” and “Pay-when-paid” Clauses in Maryland and the District of Columbia
“Pay-if-paid” and “Pay-when-paid” Clauses in Maryland and the District of Columbia
Andrew Nagel and Kenneth G. Stallard | Carr Maloney General Contractors may seek to condition payments to Subcontractors by using “pay-if-paid” or “pay-when-paid” clauses in their contracts. Typically, as the name suggests, pay-when-paid provisions concern the timing of payment by the General Contractor, but, arguably, do not relieve the General Contractor from its obligation to pay the… Continue reading “Pay-if-paid” and “Pay-when-paid” Clauses in Maryland and the District of Columbia