In an article published on Tuesday, February 25, 2020, for Contractor Magazine, Kelly Bundy and Liz Burneson discuss the enforceability of pay-if-paid provisions, alternatives to those provisions, and tips for subcontractors faced with these provisions during the contract negotiation stage and throughout the course of a project.
According to Kelly and Liz, the enforceability of pay-if-paid provisions varies by state. Subcontractors should pay attention to what law applies for each project and whether pay-if-paid provisions are enforceable in that jurisdiction. Kelly and Liz recommend that subcontractors analyze their negotiating position at the contracting stage and propose alternatives to pay-if-paid provisions if possible.
During the course of a project, subcontractors should ensure that they follow contract provisions for submitting payment applications and claims. If a dispute arises, subcontractors should determine whether any defenses to pay-if-paid provisions might apply.
Ultimately, subcontractors who fail to pay attention to pay-if-paid provisions in their subcontracts may find themselves in a difficult position unable to obtain payment from the contractor.
To learn more about pay-if-paid provisions and alternatives to these provisions, read the article on page 34 in Contractor Magazine here and contact the Hirschler team with any questions.
As president of Hirschler and head of the firm's litigation section, Courtney knows how to lead people and projects to a successful outcome.
Leveraging deep experience in the construction industry, Courtney advises public and ...
Liz is an advocate and sounding board for clients looking to avoid or manage workplace disputes. She advises business owners and management on a broad range of employment law concerns, including non-compete and non-solicitation ...
Kelly’s practice focuses on construction law, commercial and product liability law, with an emphasis on dispute resolution—including mediation, arbitration, jury and bench trials in state and federal court. She routinely ...
Nate fully engages in each case and shoulders his clients’ needs. Communication, efficiency and careful judgment define his practice. In every case, he investigates competing claims to thoroughly understand their strengths ...
A professional engineer (P.E.) and an experienced lawyer, Webb began practicing at Hirschler following four years of work as a consulting engineer. His multidisciplinary practice focuses on general business and corporate law ...
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