Faith Simms | Troutman Pepper Entech Engineering, P.C. v. Dewberry Engineers, Inc., 204 A.D.3d 467, 167 N.Y.S.3d 55 (1st Dep’t 2022) The New York Supreme Court Appellate Division recently affirmed a ruling enforcing a pay-if-paid provision. Defendant Dewberry Engineers, Inc. (Dewberry) contracted with the New York City Economic Development Corporations’ Build-It- Back Hurricane Sandy Program… Continue reading NY Appellate Court Enforces Pay-If-Paid Provision Against Party With No Lien Rights
Tag: Pay-if-Paid Clause
Construction Contract Tip – What Should Subcontractors Do About Pay-if-Paid Provisions?
Sam DeBaltzo | Tonkon Torp Almost every subcontract I see includes some type of “pay-if-paid” provision, meaning the general contractor (GC) is not required to pay the subcontractor until and if the GC receives payment from the owner. The precise language of the provision changes from contract to contract, but arises out of some variation of the… Continue reading Construction Contract Tip – What Should Subcontractors Do About Pay-if-Paid Provisions?
Virginia General Assembly Tweaks Pay-if-Paid Ban
Christopher G. Hill | Construction Law Musings Last year, the Virginia General Assembly passed into law a ban on the so-called pay-if-paid clauses, effective January 1, 2023. I shared my thoughts and concerns with the legislation as drafted at the time of its passage. During this most recent legislative session, and among some other construction-related bills, the General Assembly… Continue reading Virginia General Assembly Tweaks Pay-if-Paid Ban
Virginia Bans Pay-If-Paid Clauses to Protect Construction Subcontractors
Meghan Hunter Harrison | Troutman Pepper Virginia has joined the ranks of states that ban “pay-if-paid” clauses. Contingent payment clauses, like “pay-if-paid” and “pay-when-paid” clauses, protect contractors: A contractor need not pay its subcontractors or suppliers until the owner pays the contractor. A “pay-if-paid” clause conditions a subcontractor’s right to payment on the owner paying the contractor.… Continue reading Virginia Bans Pay-If-Paid Clauses to Protect Construction Subcontractors
New Jersey Appellate Division Confirms Enforceability of Pay-if-Paid Provisions
Jacob Perskie and Lauren Wright | Fox Rothschild In a case of first impression, the New Jersey Appellate Division has finally formally recognized the enforceability of pay-if-paid clauses in New Jersey, so long as those clauses clearly and unambiguously establish a condition precedent to payment of the subcontractor. JPC Merger Sub LLC v. Tricon Enter., Inc.,… Continue reading New Jersey Appellate Division Confirms Enforceability of Pay-if-Paid Provisions