getting paid Archive

While the full extent of the looming potential pandemic of the Coronavirus remains unknown, the real or imagined impacts are now being experienced in the economy, as restrictions on travel, voluntary shutdowns and other business restraints mount. So if these restrictions result in construction delays associated with labor shortages, material delays, health department shutdowns or […]

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 […]

In Ohio Fabricators, Inc. v. Aster Elements, Inc., 2019-Ohio-3978, Ohio’s Ninth District Court of Appeals recently refused to uphold a purported pay-if-paid clause despite the fact the clause included the phrase “condition precedent.” In the past, the use of the term “condition precedent” normally signified the payment terms were “pay-if-paid,” which required the general contractor to […]

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 […]

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 […]