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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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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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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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#88   Battle of the Forms: When Is There an Enforceable Contract?

NH Construction Law

When contracts and subcontracts are negotiated, it is common for written drafts and redrafts to circulate between the parties, sometimes with a letter of intent to enter into a contract thrown into the mix, and sometimes with competing forms being used – a proposal or bid on one side, an expansive formal contract on the other.

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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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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). Greater challenges arise when adapting DBB source documents for design-build.

EJCDC 52