“Pay-If-Paid Clause” Enforced as Condition Precedent to Subcontractor Right to Payment
ConstructionRisk.com Report Vol. #14, Issue #2
See article in the following topic indices:
Pay-If-Paid,pay-when-paid,Payment Disputes,Quantum Meruit
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A “pay-if-paid” clause was enforceable to deprive a subcontractor (Sub) to sue the general contractor (GC) for withheld retainage where the project owner, a condominium developer, failed to pay the balance it owed to the general contractor which would have included payment for the sub’s retainage. The Alabama Supreme court in Lemoine Company v. HLH [...]
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Subcontractor Had Rights as Third Party Beneficiary Under Federal Government Contract
ConstructionRisk.com Report Vol. #13, Issue #8
See article in the following topic indices:
Federal Government Contracts,Payment Disputes,Subcontract Dispute,Third party beneficiary
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Where the federal government contracting officer issued a contract modification to the prime contract to require the government to issue a two-party check jointly to the prime and a subcontractor that had complained about not being paid, the subcontractor had rights against the government as a third party beneficiary when the government failed to issue [...]
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When to Stop Work for Non-payment
Delay,pay-when-paid,Payment Disputes,Stop Work,Suspension of Work
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EVERY SUBCONTRACTOR has had to deal with slow payment by general contractors who claim that it’s not their fault – the customer hasn’t paid them and, in a slow economy, this refrain is heard more and more frequently. As sympathetic as the sub might feel, the unfairness of being held up due to a problem [...]
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Prompt Payment Act Not Triggered Until Architect Issues Payment Certificate
Certificate,Liquidated damages,Payment Disputes,Prompt Payment
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Owner had no duty to make prompt payment to its construction contractor even though the architect’s refusal to certify final payment was based on an incorrect understanding of the specifications of the construction contract. The “topsoil” specification required the contractor to provide at least four inches of fill. The architect enforced that section instead of [...]
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Fee Offset May be An Insured Claim
Insurance - Fee Withholding,Insurance Coverage Disputes,Payment Disputes
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Where a subcontract filed suit against the general contractor to collect the balance of its fee and the general contractor defended itself by claiming the right to an offset in the fee to cover damages that it alleged were caused by the subcontractor, a court held that the offset constituted a claim for damages that [...]
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