Kent Scott | Babcock Scott and Babcock | October 10, 2018 Introduction. Contingent payment clauses provide parties involved in a construction project with a contractual method for determining who will absorb losses that may occur if the owner fails to pay for work performed on the project. In Utah, the law remains unsettled in this… Continue reading Contingent Payment Clauses in Utah “Deal or No Deal?”
Tag: Pay-if-Paid Clause
Louisiana First Circuit Holds that Private Works Act Surety Cannot Raise Pay-if-Paid Defense
Mark W. Frilot, Mark W. Mercante | Baker Donelson | January 25, 2018 The Louisiana First Circuit recently held that a Private Works Act payment bond surety cannot raise a pay-if-paid provision in its principal’s contract as a defense to a claim against the bond. Bear Industries, Inc. v. Hanover Insurance Co. involved the construction of… Continue reading Louisiana First Circuit Holds that Private Works Act Surety Cannot Raise Pay-if-Paid Defense
Construction Group News: Extremely Clear Pay-If-Paid Clause is Enforced
Michael J. Donnelly | The National Law Review | January 2, 2018 Every contract involves the risk of insolvency, and every construction subcontract involves the risk of the owner/developer failing to make the payments that the contractor intends to use to pay its subcontractors. Frequently, general contractors seek to shift this risk onto their subcontractors… Continue reading Construction Group News: Extremely Clear Pay-If-Paid Clause is Enforced
The Beneficiaries of “Pay-if-Paid” Clauses in Construction Contracts
Dana Chaaban | Shutts & Bowen LLP | April 25, 2017 The law of contract formation allows parties “freedom to contract” in most aspects of transactions, services and/or liabilities. In the area of construction law, general contractors have largely negotiated a shift in the distribution of risk away from the general contractor and to the… Continue reading The Beneficiaries of “Pay-if-Paid” Clauses in Construction Contracts
Pair of Cases Concerning Pay-if-Paid Provisions
Katherine E. Kohm | The Dispute Resolver | June 23, 2016 Within the last month, two decisions with two outcomes were issued concerning “pay-if-paid” provisions. Observe that a “pay-if-paid” provision is a true condition precedent in that a general contractor is not required to pay its subcontractor unless and until it receives payment from the owner. A different result flows… Continue reading Pair of Cases Concerning Pay-if-Paid Provisions