“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

Potential Change for “Pay-if-Paid” and “Pay-when-Paid” Clauses in Michigan

Joshua Wilk | Clark Hill To understand the difference between the two contractual clauses, it is important for general contractors and subcontractors to know the following: Under current Michigan law, a contract may contain a “pay-if-paid” clause stating that the subcontractor will be paid only after the general contractor is paid. Given pay-if-paid provisions are… Continue reading Potential Change for “Pay-if-Paid” and “Pay-when-Paid” Clauses in Michigan

More Clear, But Not Yet Crystal: Virginia Amends its Prompt Payment Law and Legislation Banning “Pay-If-Paid Clauses in Construction Contracts Effective July 1, 2023

Hanna Lee Blake | ConsensusDocs The Virginia General Assembly has joined a minority of jurisdictions that ban pay-if-paid clauses in construction contracts on public and private projects. Senate Bill 550 went into effect applying to contracts executed after January 1, 2023, and most recently has been amended effective July 1, 2023. This update highlights the… Continue reading More Clear, But Not Yet Crystal: Virginia Amends its Prompt Payment Law and Legislation Banning “Pay-If-Paid Clauses in Construction Contracts Effective July 1, 2023

Pay-if-Paid Clause in Construction Contract Found to Be Enforceable

Pauline Tutelo | Marshall Dennehey Key Points: Recently, the New Jersey Appellate Division ruled on the enforceability of a “pay-if-paid” provision contained in a construction contract. See JPC Merger Sub LLC v. Tricon Enterprises, Inc., 286 A.3d 1186 (N.J. Super. App. Div. 2022). The facts of this case tell a familiar story. However, the issues they… Continue reading Pay-if-Paid Clause in Construction Contract Found to Be Enforceable

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