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Contractor Cannot make Performance Bond Claim when it Failed to Terminate its Subcontractor

by Kent Holland | Apr 27, 2021 | Newsletter Article

GC barred from recovering from the surety for damages allegedly incurred due to faulty work of subcontractor because it failed to meet the conditions precedent to the performance bond responsibility.  The surety bond expressly provided that obligations of the surety...

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...

“Condition Precedent” Means Pay IF Paid

by Kent Holland | Dec 17, 2014 | Newsletter Article, pay when paid

By J. Kent Holland, Esq. ConstructionRisk Counsel, PLLC Subcontracts may state that the subcontractor will be paid when the prime contractor is paid, or that the subcontractor will be paid only if the prime contractor is paid, and still others state that payment of...

Contractual Requirement May be Waived Despite “Non-Waiver Clause” Stating to the Contrary

by Kent Holland | May 6, 2014 | Newsletter Article

Kent Holland, Esq. and James Rhodes, Esq. The Maryland Court of Appeals held that parties’ oral agreements and/or actions can waive a “condition precedent”, notwithstanding an explicit “non-waiver” clause in the contract. Hovnanian Land Investment Group, LLC v....

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