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Are Subcontract Payment Procedures Waiving the Pay-if-Paid Clause?

Construction Dive

By Bruce Jervis Two recent cases involving the waiver of subcontract “pay-if-paid” clauses illustrate the uncertainty of enforcing these provisions. In the majority of jurisdictions, however, these clauses -- if properly drafted -- are enforceable … unless they are waived.

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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.). of the General Contract.

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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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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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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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No Free Warranty: Connecticut Court Adopts Correction or Repair Test

Constructlaw

ALS’s subcontract permitted the DOT to hold back 60% of its payments to assure ALS would warranty the work, which ALS did with site checks performed between June 2019 and May 2020. Drafting subcontracts appropriately can give both developers and subcontractors greater security and reliability of outcome.

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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.