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Forum Selection Clauses in Construction Subcontracts Require Careful Drafting

Construction Lawyer

17, 2013), demonstrates the difficulty faced by parties in drafting appropriate forum selection provisions in construction agreements. Ryan, in turn, subcontracted part of the work to Welch, a Hawaii corporation. Nor does the subcontract contain anything like Paragraph 24.3.3 Dist, Sept. Italics added.).

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The Real Lemon in the Bunch: Understanding Pay-If-Paid Clauses in Construction Contracts

Best Practices Construction Law

Contractors have a means of shifting the risk of non-payment by the owner to its subcontractor by including a certain payment provisions in the subcontract agreement. Court of Appeals for the 4th Circuit concluded that a “pay if paid” clause in a subcontract was not ambiguous and, therefore, enforceable against the subcontractor.

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Have You Seen All the Contract Documents?

Construction Dive

By Bruce Jervis Many project owners, contractors and subcontractors use their own “standard” forms of agreement. Not surprisingly, these customized contracts tend to favor the drafting party. The drafting party seeks to impose its terms through reference. What is disturbing is the lack of transparency.

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California Legislature Further Helping Subcontractors

Construction Law Monitor

In a perfect world, general contract presents the subcontract document to the subcontractor, and that sub has its lawyer review the contract to see if the terms can be negotiated so that its a fair document for all involved. There is no need to waste taxpayer money to draft, argue, and pass bills such as these.

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The Real Lemon in the Bunch: Understanding Pay-If-Paid Clauses

Best Practices Construction Law

Contractors have a means of shifting the risk of non-payment by the owner to its subcontractor by including a certain payment provisions in the subcontract agreement. Court of Appeals for the 4th Circuit concluded that a “pay if paid” clause in a subcontract was not ambiguous and, therefore, enforceable against the subcontractor.

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Tips for Creating a Healthy Cash Flow

Best Practices Construction Law

As a preliminary matter, make sure that you get a written contract when starting a new project and make sure that both parties sign the agreement. Although courts treat oral agreement differently in each state, a written agreement will be easier to enforce. Contract Provisions. Project Management Tips.

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Supreme Court Speaks on Forum Selection Clause in Construction Dispute

Best Practices Construction Law

The underlying dispute related to a subcontract agreement on a construction project located on Fort Hood in Texas. The general contractor tried to get out of the lawsuit by filing a motion to dismiss or, in the alternative, tried to get the case transferred to Virginia based upon a forum selection clause in the subcontract agreement.