Mark Frilot, Max Hadley and Mark Mercante | Baker Donelson Governor Landry recently signed into law two legislative acts that should allow Private Works Act and Public Works Act payment bond sureties to rely on defenses available to their general contractor principals in defense of sub-tier payment claims, including “Pay-If-Paid” provisions contained in the general… Continue reading Louisiana Legislature Grants Sureties the Right to Raise Contractor Defenses, Including “Pay-If-Paid”
Tag: Pay-if-Paid Clause
Enforceability of Pay-if-Paid Clauses in Construction Subcontracts: Mid-Atlantic Region
Jessica duHoffmann and Jonathan Neri | PilieroMazza Pay-if-paid clauses are conditional payment provisions regularly included in construction subcontracts. The intent of these clauses is to shift the risk of loss from a prime contractor to its subcontractors by making a project owner’s payment to the prime contractor a condition precedent to the prime contractor’s obligation… Continue reading Enforceability of Pay-if-Paid Clauses in Construction Subcontracts: Mid-Atlantic Region
“Pay-if-paid” and “Pay-when-paid” Clauses in Maryland and the District of Columbia
Andrew Nagel and Kenneth Stallard | Carr Maloney General Contractors may seek to condition payments to Subcontractors by using “pay-if-paid” or “pay-when-paid” clauses in their contracts. Typically, as the name suggests, pay-when-paid provisions concern the timing of payment by the General Contractor, but, arguably, do not relieve the General Contractor from its obligation to pay… Continue reading “Pay-if-paid” and “Pay-when-paid” Clauses in Maryland and the District of Columbia
“Pay-if-paid” and “Pay-when-paid” Clauses in Maryland and the District of Columbia
Andrew Nagel and Kenneth G. Stallard | Carr Maloney General Contractors may seek to condition payments to Subcontractors by using “pay-if-paid” or “pay-when-paid” clauses in their contracts. Typically, as the name suggests, pay-when-paid provisions concern the timing of payment by the General Contractor, but, arguably, do not relieve the General Contractor from its obligation to pay the… Continue reading “Pay-if-paid” and “Pay-when-paid” Clauses in Maryland and the District of Columbia
Potential Change for “Pay-if-Paid” and “Pay-when-Paid” Clauses in Michigan
Joshua Wilk | Clark Hill To understand the difference between the two contractual clauses, it is important for general contractors and subcontractors to know the following: Under current Michigan law, a contract may contain a “pay-if-paid” clause stating that the subcontractor will be paid only after the general contractor is paid. Given pay-if-paid provisions are… Continue reading Potential Change for “Pay-if-Paid” and “Pay-when-Paid” Clauses in Michigan