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What is a ‘Mechanic’s Lien’: Understanding Your Rights and Obligations

Building Radar

A mechanic’s lien is a legal claim against a property for unpaid work or materials provided during construction or renovation. Understanding how mechanic’s liens work, including your rights and obligations, is crucial for anyone involved in construction projects, whether you’re a contractor, subcontractor, or property owner.

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Virginia Joins 11 Other States Prohibiting Pay-If-Paid Clauses in Construction Contracts

Best Practices Construction Law

shifting the risk of nonpayment … “Payment from the Owner to the Contractor is a condition precedent to payment from the Contractor to the Subcontractor.”). Generally, most states that have addressed the issue allow “pay if paid” clauses so long as there is clear and unambiguous language shifting the risk of non-payment to the subcontractor.

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What is Retainage in Construction?

Lets Build

The purpose of retainage is to reduce the owner’s risk of a contractor not completing the project to their specifications. Let’s look at California – the state with the highest construction output in the US – as an example. Retainage and mechanic’s liens.

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7 Things Contractors Need to Know About Retainage

Fieldwire

The practice dates back to the 1840s, dreamed up as a measure to reduce the owner’s risk and ensure that the project is fully completed according to the job specifications. On public projects in California, for example, state law caps retainage at 5% prior to completion and acceptance of the project.

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constructionattorneyblog: California: No contractual jury waiver

Construction Lawyer

In other words, you use the stuff we post here at your own risk. California: No contractual jury waiver. The California Supreme Court, on August 4, 2005, in Grafton Partners v. It will be interesting if courts in other states continue to side with the big corporations or help the little guy by adopting this California approach.

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constructionattorneyblog: California: expert can seek equitable.

Construction Lawyer

In other words, you use the stuff we post here at your own risk. California: expert can seek equitable contribution from law firm. Then, again, this was in California. Listed below are links to weblogs that reference California: expert can seek equitable contribution from law firm : Recent Posts. mechanics liens.

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Common Law Analysis – Pay-if-paid, Pay-when-paid & Liquidating Agreements in Construction Contracts

Construction Law Monitor

A liquidating agreement clause can act like a lien, in that it gives causes of action to the subcontractor against the owner where there is no privy of contract. Further reading: California Pay-if-paid Wm. Click here for Daniel S. Brennan’s The Construction Contracts Book. Liquidating Agreement. Sloan pg 17. Lawyer, Oct.