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

Autodesk Construction Cloud

For this reason, construction professionals must find better ways to craft and negotiate agreements. She recalls her experience speaking with a fellow attorney who had to go through a 129-page subcontract that could have been cut down to ten pages. The shifting of risk and liabilities is a very common practice when drafting contracts.

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Specifications for design-build projects

Construction Specifier

A substantial challenge faced by professionals preparing construction specifications for design-build projects is most master specifications were developed for traditional DBB or its ‘close relation,’ design-negotiate-build (DNB).

Design 52
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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.

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No April Fools' Joke: Supreme Court Takes Appeal in Construction Case

Best Practices Construction Law

The dispute relates 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. 2012) cert.