Practical Training for Project Managers & Supervisors Two-Part Webinar Series: Part Two
Virginia has joined the ranks of states that ban “pay-if-paid” clauses. Contingent payment clauses, like “pay-if-paid” and “pay-when-paid” clauses, protect contractors: A contractor need not pay its subcontractors or...more
In a case of first impression, the New Jersey Appellate Division has finally formally recognized the enforceability of pay-if-paid clauses in New Jersey, so long as those clauses clearly and unambiguously establish a...more
Imagine you are an electrical subcontractor working in Virginia for a general contractor on a commercial project. Because you perform electrical work, much of your scope falls after framing and roofing, and after the envelope...more
Virginia has joined 11 other states that have expressly prohibited “pay if paid” clauses in construction contracts. If you have construction projects in Virginia, then read on. If you want know whether your state prohibits...more
Contractor and subcontractor negotiations often lead to contract terms and language being incorporated into the subcontract agreement, which then leads to surprising results when issues arise. These results often occur when...more
This article is a continuation of Monday’s article, and we will be discussing in detail the new payment terms for all construction contracts in Virginia....more
Pay when paid clauses are common in the construction industry. A typical pay when paid clause sounds something like this: “Prime Contractor will not pay Subcontractor until Prime Contractor receives payment from Owner.” ...more
The Louisiana First Circuit recently held that a Private Works Act payment bond surety cannot raise a pay-if-paid provision in its principal's contract as a defense to a claim against the bond. Bear Industries, Inc. v....more
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
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
Subcontracts typically contain either a pay-when-paid clause or a pay-if-paid (i.e., contingent payment) clause. A pay-when-paid clause only deals with the timing of the obligation to pay the subcontractor. ...more