General contractors utilize subcontract agreements to protect their interests and shift risk downstream to subcontractors. They accomplish this end by including powerful contract clauses that provided little escape from harsh outcomes if the project does not unfold as planned. One such clause is the contingent payment clause, also known as “pay when paid” or “pay if paid” clauses, which obliges a subcontractor assume the risk of the owner’s failure to pay.
One of its biggest drawbacks of our court system is the lengthy resolution to disputes. Attorneys looking to bring about a speedy judgment for their clients have increasingly relied upon arbitration. But at what cost?
Generally speaking, it is a good business practice to have all of the essential terms between the parties to be put into a written agreement before the work starts. But, in a situation such as the aftermath of a hurricane, that may not always be possible to do upfront. However, it is not too late […]
In this article, we cover five questions contractors and subcontractors should ask before entering into a construction contract.
