subcontractors Archive

“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 […]

The Ten Commandments of Construction Law

A construction project can be “a problem in progress.” What separates successful owners, contractors and subcontractors from the others is their ability to effectively manage those problems. Practitioners advising the construction industry frequently consult the relevant contract documents when dealing with these problems, but there are several key statutes that trump the contract that counselors […]

Ohio Mechanic’s Lien Claimants Can Recover Legal Fees

Those perfecting mechanic’s liens on Ohio construction projects are often frustrated by the costs of doing so. Many do not appreciate that Ohio has a statute – R.C. 1311.16 – that provides in relevant part: When judgment is rendered…the court may allow reasonable attorney’s fees to be paid out of the fund realized for lien […]

Certain Contract Indemnity Provisions are Unenforceable

It has become increasingly common for those in the construction industry to encounter indemnity provisions in their contracts. Indemnity provisions are agreements where one party (the promisor) agrees to protect and hold harmless the other party (the promisee) from liability arising from certain risk. These provisions can shift the risk of liability from a negligent […]