Pay if Paid Construction Contracts

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Who Assumes the Risk of Material Cost Increases? As Always, It Depends!

When a client asks me about a particular contract provision and why it is “unfair” or “uneven”, we began a discussion about risk allocation. You see, the contract is used to shift the various risks on the project to the party...more

Limitations of Liability – Scenario 3: Pay if Paid and Flow Through Clauses

I suppose that it is apropos that I have been delayed in writing this final piece in the four-part Limitations of Liability series, relating to subcontract pay if paid and flow through clauses. Being more than one step...more

One Word Makes All The Difference – The Distinction Between “Pay If Paid” and “Pay When Paid” Clauses

Payment clauses in California construction contracts are often complex and multi-layered. This is especially true in contracts between general contractors and their subcontractors. The general does not want to pay the subs...more

Caution: Pay-When-Paid Clauses Are a Danger Zone in California

Subcontracts often contain payment provisions to deal with the issue that a general contractor wants to be paid by the project owner before the general contractor has to pay its subcontractors. Two common subcontract...more

Limitations of Liability – The Elephant in the Room

This is the first post in the four-part series “Limitations of liability—The Elephant in the Room.” One or more of the following scenarios takes place in my office virtually every day...more

When Will You Get Paid? Depending on Your Contract, Maybe Never…

If you’re like anyone else, you think that once you’ve been hired, you perform your work and you get paid. Simple, sensible. The Ohio Supreme Court recently confirmed that like anything else, your right to be paid for your...more

The Differences between “Pay if Paid” and “Pay When Paid” Clauses in Construction Contracts

As attorneys that draft construction contracts and litigate construction disputes on a regular basis, we have seen how construction contract terms are used in contracts and what the practical effects of these terms may be on...more

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