Christopher G. Hill | Construction Law Musings In a move that was much anticipated, the Virginia senate recently passed legislation barring straight pay-if-paid clauses in construction contracts between General Contractors and Subcontractors. SB550 effectively nullifies the “condition precedent” pay-if-paid clauses that are sometimes the bane of a subcontractor’s existence. The Virginia House of Delegates passed its own substitute bill… Continue reading PSA: Virginia House Passes Pay-if-Paid Ban for Construction Contracts
Tag: Pay-if-Paid Clause
Contractual “Pay if Paid” and “Pay when Paid” Clauses? What is a California Construction Subcontractor to Do?
William L. Porter | Porter Law Group The Situation California Construction Subcontractors Face in Obtaining Payment: California construction subcontractors find themselves faced with a significant payment issue every time they are asked to sign a subcontract on a major project. Invariably, the subcontract the prime contractor presents to the subcontractor for signature will contain a… Continue reading Contractual “Pay if Paid” and “Pay when Paid” Clauses? What is a California Construction Subcontractor to Do?
“Pay When Paid” Provisions May Not Be Dead, Yet
Garret Murai | California Construction Law Blog Sophisticated contractors know that in California contractual “pay when paid” provisions are enforceable but that “pay if paid” provisions are not. “Pay If Paid” v. “Pay When Paid” Provisions A “pay if paid” provision is one in which a higher tier party agrees to pay a lower tier… Continue reading “Pay When Paid” Provisions May Not Be Dead, Yet
Pay-When-Paid: What is a Reasonable Amount of Time to Withhold Payments to a Subcontractor?
Brent R. Laman | Smith Currie & Hancock In an early Rolling Stones classic, Mick Jagger sang, “Ti-i-i-ime is on my side.” The refrain to that hit melody “yes it is” appears to hold true if you are a subcontractor in New York looking to get paid for completed work even while the owner and… Continue reading Pay-When-Paid: What is a Reasonable Amount of Time to Withhold Payments to a Subcontractor?
General Contractors: The Payment Provisions in Your Subcontracts May Have Just Been Determined to be Unenforceable
Scott Halberstadt | TALG While it has been more than twenty years since the California Supreme Court determined, in Wm. R. Clarke Corp. v. Safeco Ins. Co., that “pay-if-paid” provisions in subcontracts were unenforceable, following a recent decision from the Court of Appeal, Fourth Appellate District, general contractors, or any other contractors that contract directly with owners,… Continue reading General Contractors: The Payment Provisions in Your Subcontracts May Have Just Been Determined to be Unenforceable