subcontractors Archive

We helped negotiate, draft and pass Ohio’s Prompt Payment Act (R.C. 4113.61) in the early 1990s. It became a model for many other states. The Act provides that once a contractor gets paid for a subcontractor’s (or supplier’s) work, he must pay the subcontractor within ten (10) calendar days after receipt. If he fails to […]

“Any Construction Project Is a Problem in Progress” What separates successful owners, contractors and subcontractors from the unsuccessful ones is the ability to effectively manage problems. Through the effective management of problems with good people, problems can be resolved without deteriorating into serious disputes, or if disputes occur, they can be more timely and inexpensively […]

Bonding companies often argue that payment is not yet due under a payment bond because of “pay if paid” clauses, alternative dispute resolution (“ADR”) requirements, or other provisions of subcontracts that purport to delay recovery until the resolution of the dispute between the Owner and Contractor. But the case of Strittmutter Metro, LLC v. Fidelity […]

We have long counseled Owners about the risks associated with the standard AIA contract language stating that the Architect’s Drawings are “Instruments of Service” and the license to use them can be withheld by the Architect in the event there is a dispute between the Owner and Architect – involving payment or otherwise. It is […]

General Contractors and Construction Managers that do work with the OFCC should be aware of the OFCC’s purported right to reject certain subcontractors without having to pay for the additional costs that usually come with going to the next subcontractor. Recently the OFCC has invoked such a right and refused to pay the additional cost […]