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Limitation of Liability Clause Ambiguous in Engineering Agreement

by Kent Holland | Jan 19, 2022 | Newsletter Article

A contract between an Engineer subconsultant and an Architect contained a limitation of liability clause stating that liability was limited to twice the amount of Engineer’s fee.  When Architect sued Engineer for damages the project owner was awarded in arbitration,...

Lien Waiver and Release Forfeited Prime’s Right to Assert Subcontractor Pass-Through Claim

by Kent Holland | Jun 25, 2018 | Newsletter Article

A prime contractor on a federal government contract was held to have waived pass-through claims of its subcontractor by virtue of having signed a series of lien waivers and releases. To receive payment under the subcontract, the Sub was required to sign these periodic...

Pay-if-Paid Clause Enforced to Deny Payment to Subcontractor (Missouri law)

by Kent Holland | May 31, 2017 | Newsletter Article

Where a subcontract clause stated that the subcontractor agreed that the prime would not be responsible to make any payment to the Sub “unless and until [Prime] receives payment … from Owner of the project,” a Missouri appellate court found that the language was clear...

“Pay-when-paid” treated as a “Pay-IF-paid” due to Condition Precedent Language (Virginia law)

by Kent Holland | May 31, 2017 | Newsletter Article

A question sometimes arises as to whether a payment clause in a subcontract creates an absolute bar to subcontractor payment in the event an owner fails to pay the prime contractor or creates merely a time frame for paying the subcontract, thereby requiring payment...

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