Garret Murai | California Construction Law Blog Sophisticated contractors know that in California contractual “pay when paid” provisions are enforceable but that “pay if paid” provisions are not. “Pay If Paid” v. “Pay When Paid” Provisions A “pay if paid” provision is one in which a higher tier party agrees to pay a lower tier… Continue reading “Pay When Paid” Provisions May Not Be Dead, Yet
Tag: Pay-When-Paid Clause
Court Provides Guidance on ‘Pay-When-Paid’ Provisions in Construction Subcontracts
Ted R. Gropman and Cindy J. Lee | ConsensusDocs On April 17, the California Court of Appeal decided Crosno Construction, Inc. v. Travelers Casualty & Surety Company of America,1 effectively narrowing the scope of enforceable “pay-when-paid” provisions in construction subcontracts to the extent the subcontractor seeks recovery against a general contractor’s payment bond surety. Although the Crosno case involved… Continue reading Court Provides Guidance on ‘Pay-When-Paid’ Provisions in Construction Subcontracts
Enforceability Of Subcontract “Pay-When-Paid” Provisions – An Important Update
Patrick McNamara | Porter Law Group A California Court of Appeals opinion published earlier this month brings a change to payment bond claims brought by unpaid subcontractors and suppliers. The decision (Crosno Construction, Inc. v. Travelers Casualty and Surety Company of America) places limitations on a payment bond surety’s ability to rely on subcontract “pay-when-paid”… Continue reading Enforceability Of Subcontract “Pay-When-Paid” Provisions – An Important Update
Pay-When-Paid: What is a Reasonable Amount of Time to Withhold Payments to a Subcontractor?
Brent R. Laman | Smith Currie & Hancock In an early Rolling Stones classic, Mick Jagger sang, “Ti-i-i-ime is on my side.” The refrain to that hit melody “yes it is” appears to hold true if you are a subcontractor in New York looking to get paid for completed work even while the owner and… Continue reading Pay-When-Paid: What is a Reasonable Amount of Time to Withhold Payments to a Subcontractor?
General Contractors: The Payment Provisions in Your Subcontracts May Have Just Been Determined to be Unenforceable
Scott Halberstadt | TALG While it has been more than twenty years since the California Supreme Court determined, in Wm. R. Clarke Corp. v. Safeco Ins. Co., that “pay-if-paid” provisions in subcontracts were unenforceable, following a recent decision from the Court of Appeal, Fourth Appellate District, general contractors, or any other contractors that contract directly with owners,… Continue reading General Contractors: The Payment Provisions in Your Subcontracts May Have Just Been Determined to be Unenforceable