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...
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...
J. Kent Holland, J.D. ConstructionRisk, LLC On a California project, where an architect’s agreement with its landscape design subconsultant called for all disputes to be resolved by the courts in Texas, applying Texas law, a California appellate court held the forum...
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...
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...
Where a pay when paid clause in a construction subcontract unambiguously states that the subcontractor will only be paid for its work after the prime contractor has been paid by the project owner, the clause was ambiguous due to incorporation of the AIA form prime...
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...
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