Matthew DeVries | Best Practices Construction Law | November 22, 2019 As you may be aware, one of the greatest risks on a construction project involves the payment process. Just like my kids expect to be paid for the lemonade they sell, contractors and subcontractors expect to be paid on a timely basis once the… Continue reading The Real Lemon in the Bunch: Understanding Pay-If-Paid Clauses in Construction Contracts
Tag: Pay-if-Paid Clause
Pay-if-Paid Clauses: A Surety’s Defense for Payment Bond Claims?
Robert Cox | Williams Mullen | August 14, 2019 A construction project can be a breeding ground for general contractor versus subcontractor payment disputes. Whether it is payment for extra work subject to the project owner’s approval, slow pay or no pay by the project owner, and the general contractor has provided a payment bond,… Continue reading Pay-if-Paid Clauses: A Surety’s Defense for Payment Bond Claims?
Contingent Payment Clauses in Utah “Deal or No Deal?”
Kent Scott | Babcock Scott and Babcock | October 10, 2018 Introduction. Contingent payment clauses provide parties involved in a construction project with a contractual method for determining who will absorb losses that may occur if the owner fails to pay for work performed on the project. In Utah, the law remains unsettled in this… Continue reading Contingent Payment Clauses in Utah “Deal or No Deal?”
Louisiana First Circuit Holds that Private Works Act Surety Cannot Raise Pay-if-Paid Defense
Mark W. Frilot, Mark W. Mercante | Baker Donelson | January 25, 2018 The Louisiana First Circuit recently held that a Private Works Act payment bond surety cannot raise a pay-if-paid provision in its principal’s contract as a defense to a claim against the bond. Bear Industries, Inc. v. Hanover Insurance Co. involved the construction of… Continue reading Louisiana First Circuit Holds that Private Works Act Surety Cannot Raise Pay-if-Paid Defense
Construction Group News: Extremely Clear Pay-If-Paid Clause is Enforced
Michael J. Donnelly | The National Law Review | January 2, 2018 Every contract involves the risk of insolvency, and every construction subcontract involves the risk of the owner/developer failing to make the payments that the contractor intends to use to pay its subcontractors. Frequently, general contractors seek to shift this risk onto their subcontractors… Continue reading Construction Group News: Extremely Clear Pay-If-Paid Clause is Enforced