Matt Viator

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Pay if paid clauses are generally frowned upon in the construction industry. However, a recent case shows that pay if paid clauses are clearly enforceable in Alabama. Pay if paid clauses, generally Pay if paid clauses, by and large, are looked down upon. These provisions attempt to shift the risk of nonpayment down the payment chain. So, when a construction contract contains pay if paid clause, payment won’t be made on that contract until the…
Joint checks can solve a lot of problems within the construction payment chain. But, they can create new problems, too. Like – what happens when one party to a joint check refuses to endorse or deposit the check? Joint checks in general Joint checks can help make sure that everyone gets paid what they’re due. In a normal, non-joint check situation there’s one payor (the party making payment) and one payee (the party receiving payment).…
The next time Tennessee residential contractors renew their license, there will be a new requirement to look out for. Beginning January 1, 2020 residential contractors must complete eight hours of continuing education every two years following a recent legislative amendment. Tennessee contractors license renewal: Residential contractors must continue education You can read TN HB1064 for yourself here, courtesy of LegiScan. Bass, Berry & Sims also discusses it here, among other recent TN construction…
New York pay when paid clauses, like many other states, will only serve as a timing mechanism – unlike pay if paid clauses. As a result, New York construction businesses cannot unreasonably delay payment, even where a pay when paid clause is present. A recent New York case helped drive that point home. Pay when paid clauses, generally For more on the topic: Pay If Paid or Pay When Paid: What’s the Difference, and Why
When we talk mechanics liens, we’re usually speaking to contractors, subs, or suppliers. However, in a large number of states, mechanics lien rights also extend to design professionals. The architects, engineers, and surveyors who put hard work into the design of improvements deserve protection too, right? Recently, Michigan provided a strong vote of approval for that sentiment. Lien Rights For Design Professionals, Generally Before getting into the new changes, let’s first look at the lay…
Hurricane Michael was one of the most-damaging hurricanes to hit the mainland United States ever. Being from Louisiana, we at zlien have seen some big storms. In fact, our very company was created, in large part, as a result of the construction work afterward. Recovering from Hurricane Michael will take a similar effort, and the construction industry plays perhaps the biggest role in that recovery. Recovering From Hurricane Michael: The Basics In this article, we’ll…
Today’s the day! That is, October 10, 2018… Pennsylvania contractors, subcontractors, and even property owners should take note – HB 566 comes into effect today. HB 566 made changes to the Pennsylvania Contractors and Subcontractors Payment Act (also known as CASPA). These changes affect how payment is withheld, penalties for wrongful withholding, and the right to stop work – among other slight changes. Let’s do a quick overview of some of the biggest alterations. For…
When a natural disaster is on the horizon, there are a million things to worry about. Obviously, safety is number one. But it’s also worth keeping an eye forward. After major storms like Hurricane Florence, there will likely be lots of property damage and lots of construction work. The rush to repair homes and businesses can be a chaotic time for property owners, but it’s a chaotic time for construction businesses, too. With that in…
With great power comes great responsibility. When talking about mechanics liens (construction’s most powerful tool for payment), this responsibility manifests itself in strict deadlines. Once a lien is filed, the clock starts ticking. If the clock strikes zero and no enforcement action is brought, the lien “expires”. This means that the lien claimant may no longer bring an enforcement action (read: lawsuit) to enforce their lien claim. But what happens when a lien does expire? The answer to…
Construction jobs go off-schedule. As a contractor or sub, this is basically a fact of life – even the best laid plans can fail. But what happens when your work is affected by someone else‘s problem, costing you money? When a job really goes awry and costs a construction company precious time and money, that company might sue for damages related to the delay. Thus, the “No Damages for Delay” clause was born – to protect owners,…