Legal Insights Archive

It’s Miller Time! Miller Act Trumps Subcontract Clauses

As unpaid subcontractors and suppliers cannot lien federal projects, the Miller Act was adopted to ensure payment bonds would guarantee payment of those providing labor or material to federal jobs. Contractors and their bonding companies have argued that “pay if paid” clauses or “no damage for delay” clauses in subcontracts can be utilized to insulate […]

We Can’t Agree on a Change Order … Now What?

Change Orders are as common to construction as lawsuits are to lawyers. But the process for dealing with them, when there is no agreement, can vary widely. And yet, the first thing you should do when encountering a change is almost always the same – READ THE CONTRACT. Now that you have the contract in […]

Design-Assist vs. Design-Build

The terms, Design-Assist and Design-Build, are frequently used by the construction industry in recent years. While they sound similar, they could not mean more different things. Design Assist Under Design-Assist, the construction team, often including key subcontractors, is engaged by the owner to collaborate with the design professional during the design phase to improve constructability […]

Do I Need a Bond on My Next Project?

Many owner-developers choose to forego requiring a Performance and Payment Bond from their contractors in the hope of shaving another 1%-2% from the project cost. However, current market conditions suggest that owners rethink that decision. The current industry environment consists of busy contractors competing for a limited labor pool, and struggling to meet ambitious project […]

5 Ways to Attack a “Pay if Paid” Clause

“Pay when Paid” in many jurisdictions – including Ohio – means that while timing of payment may be delayed, there still is obligation to pay the sub within a reasonable period of time. In contrast, “Pay if Paid” (frequently utilizing words like “if” and “condition precedent”) means that not only timing, but also entitlement to […]