Dana Chaaban | Shutts & Bowen LLP | April 25, 2017 The law of contract formation allows parties “freedom to contract” in most aspects of transactions, services and/or liabilities. In the area of construction law, general contractors have largely negotiated a shift in the distribution of risk away from the general contractor and to the… Continue reading The Beneficiaries of “Pay-if-Paid” Clauses in Construction Contracts
Tag: Pay-if-Paid Clause
Pair of Cases Concerning Pay-if-Paid Provisions
Katherine E. Kohm | The Dispute Resolver | June 23, 2016 Within the last month, two decisions with two outcomes were issued concerning “pay-if-paid” provisions. Observe that a “pay-if-paid” provision is a true condition precedent in that a general contractor is not required to pay its subcontractor unless and until it receives payment from the owner. A different result flows… Continue reading Pair of Cases Concerning Pay-if-Paid Provisions
Pay-if-Paid Clauses, Nasty, but Enforeceable
Craig Martin | Construction Contractor Advisor | March 8, 2015 I am preparing for a presentation this week on Troublesome Contract Clauses to the Construction Specifications Institute (“CSI”), Nebraska Chapter. One of the clauses we will be discussing is the dreaded Pay-if-Paid clause, a particularly nasty provision that places the risk of owner’s solvency squarely… Continue reading Pay-if-Paid Clauses, Nasty, but Enforeceable