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Is There a Way to Deal with These Pay-if-paid Provisions?

They are a problem for all subcontractors and suppliers – those pay-if-paid provisions stating that payment won’t be due from a general contractor until and unless it is first paid by the owner. This shifting of the risk of non-payment from a contractor to its subs and material suppliers has found its way into most construction contracts you see today. But many of these clauses are ambiguous. The pay-if-paid language can be interpreted on the one hand as establishing the condition that payment must first be received from the owner before it must be paid out to the provider, or, ... Read more

Do You Have These 2 Provisions in Your Contracts?

Every company seems to have its own form of contract these days. Whether it’s the general contractor, the plumber, or the tile distributor, everyone wants you to sign “their” contract, so that they’re protected on the job—or so they hope. In the rush to get a job and get it started, many contractors find they can’t get their terms and conditions into a contract so they overlook important details in the contracts they do sign. This could be a mistake, a big mistake, especially if the following provisions are not addressed! Legal Fees If you have to pay an attorney to prosecute ... Read more

Can a Replaced Engineer Still Be Liable?

An engineer drew up and sealed a set of plans for a county road. The drawings and specifications provided for speed limits, warning signs, and pavement markings. At some point, the county decided to incorporate several changes to the design but did so without any input from the engineer. Instead, the county used its in-house engineering department and had them sign and seal the modified plans. When a fatal accident occurred on the road, the decedent’s estate sued both the county and the engineering firm. The engineering firm suggested it couldn’t be held liable since it had been replaced and its plans ... Read more