getting paid Archive

Subcontractors + Suppliers Score a Mechanic’s Lien Rights Victory in Ohio Appellate Court

On August 14, 2019, the Court of Appeals, Ninth Judicial District (Summit County) handed Ohio subcontractors and suppliers a victory on mechanic’s lien rights by reversing and remanding a trial court decision where the lower court had held that a subcontractor’s notice of furnishing was invalid because it was served before the sub had performed any labor or […]

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 […]

“Pay-if-Paid” No Defense to Miller Act Claim

“Pay-if-paid” clauses are finding their way into subcontracts with increasing frequency. These clauses tie the subcontractor’s right to payment to the contractor’s receipt of payment from the owner. Federal projects require the contractor to post a “Miller Act” payment bond guaranteeing timely payment to subcontractors and suppliers. A recent case out of Virginia has answered […]

Debunking the Top Ten Payment Myths

Payment is the lifeblood of any contractor, subcontractor or supplier. Yet many myths adversely affect your ability to timely secure payment. Here is my personal top ten. 1. “Don’t worry about it, we can always lien.” While lien rights are important, they are not a substitute for good credit practices. Lien rights only attach to any […]