Ted Gropman and Cindy Lee | Constructlaw 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 a public… Continue reading California Appeals Court Provides Guidance on ‘Pay-When-Paid’ Provisions in Construction Subcontracts
Tag: Pay-When-Paid Clause
Recent Court Decision Affects Enforceability of Pay-When-Paid Clauses
Mary A. Salamone | Procopio Cory Hargreaves & Savitch Construction contracts are exchanged so routinely that it is not uncommon for contractors to give the documents a quick glance or not even read them altogether before signing. Even when a contractor examines a contract thoroughly, legal terminology with profound impact may be overlooked. Since it… Continue reading Recent Court Decision Affects Enforceability of Pay-When-Paid Clauses
“Pay-When-Paid”: Is there a “Reasonable Time” for Subcontractors to Wait for Payment Once Contractor-Owner Litigation Ensues?
Christopher M. Wise | The Dispute Resolver Obviously, subcontractors prefer to be paid within a reasonable time, but the issue of what constitutes a “reasonable time” has been a conundrum many states have tackled over the years. From “pay-if-paid” to “pay-when-paid” provisions, states have either adopted one, both, or neither of these commonly controversial, heavily… Continue reading “Pay-When-Paid”: Is there a “Reasonable Time” for Subcontractors to Wait for Payment Once Contractor-Owner Litigation Ensues?