Common Law Analysis – Pay-if-paid, Pay-when-paid & Liquidating Agreements in Construction Contracts

In a recent decision, Sloan & Company v. Liberty Mutual Insurance Company ("Sloan"), the US Court of Appeals for the Third Circuit has an in depth discussion regarding some technical yet very important clauses found within many construction contracts between general contractor, subcontractors, owner and the surety. Although the court interprets Pennsylvania law, these concepts […]

3 Legal Concepts That Are Counter-Intuitive…and Dangerous

Sometimes the best blog posts and legal articles are the simplest.   Take, for example, a post from early October by Joshua Glazov on his Construction Law Today blog, where he simply cites a 1941 quote from US Supreme Court Justice Robert Jackson: The legal profession, like many another, tends to become over-professionalized.  We forget that […]

A Catch-22: Pay When Paid Clauses Do Not Extend the Lien Period

If you search "Pay When Paid Clauses" in Google, you're going to get a lot of results that say a lot different things. This contractual provision - used in almost every general / sub construction contract - is perhaps one of the most confusing or misunderstood provisions out there. We recently blogged about the dangers […]

Problems Can Arise When Using One Contract in Multiple States

Bowie & Jenson's Construction Law Forum blog just posted about a case out of the U.S. Fourth Circuit that demonstrates problems that may arise when a contractor uses one form contract in two different states.  In the 4th Circuit case discussed, Universal Concrete Products v Turner Construction Company, Maryland and Virginia were the bordering states […]

Payment Provisions in Construction Contracts – Louisiana Law

Background on Payment Provisions & What is a "Pay When Paid" Clause While it's common practice in the construction industry to provide for partial payments from the contractor to subcontractor as work progresses, in Louisiana, unless the contract specifies otherwise, payment from the general contractor to the subcontractor is not actually due until the project […]