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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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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 of the General Contract. Dist, Sept.

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Have You Seen All the Contract Documents?

Construction Dive

Not surprisingly, these customized contracts tend to favor the drafting party. The drafting party seeks to impose its terms through reference. Featured …Assent to Unsigned “Standard” Subcontract Cannot Be InferredPrice Evaluation Tainted by Misinformation on Estimate

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Should “Pay-if-Paid” Clauses Be Bluntly Worded?

Construction Dive

By Bruce Jervis “Pay-if-paid” clauses in subcontracts are controversial. In most states, however, they are enforceable if clearly drafted. In most states, however, they are enforceable if clearly drafted. In some states, pay-if-paid clauses have been rendered unenforceable by statute or judicial ruling.

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Digital Builder Podcast Ep 22: How Specialty Contractors Can Navigate Contracts & Get Paid On Time

Autodesk Construction Cloud

In a perfect world, a contract should include a clear set of instructions that conveys well-defined expectations to all parties concerned. This episode of Autodesk’s Digital Builder podcast addresses the most common challenges with contracts and how simple adjustments can ensure you fully understand what you’re signing.

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California Legislature Further Helping Subcontractors

Construction Law Monitor

This Bill protects subcontractors when contracting so that they cannot be held liable to indemnify the general contractor or owner from certain types of negligence. This Bill raises a bigger and more overarching question as to why do state legislatures feel the need to make rules to restrict the freedom to contract.

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Authority of Arbitrator to Award Attorneys Fees when not mentioned in Contract

Construction Lawyer

The contract between the parties contained these dispute resolution provisions: § 6.2.1 Any claim arising out of or related to this Subcontract. Demand for arbitration shall be filed in writing with the other party to this Subcontract and with the American Arbitration Association, and a copy shall be filed with the Architect.