Enforceability Of Subcontract “Pay-When-Paid” Provisions – An Important Update
A California Court of Appeals opinion published earlier this month brings a change to payment bond claims brought by unpaid subcontractors and suppliers. The decision (Crosno Construction, Inc. v. Travelers Casualty and Surety Company of America) places limitations on a payment bond surety’s ability to rely on subcontract “pay-when-paid” language, stating that a payment provision […]
Killer Subcontract Provisions
We are frequently requested by subcontractor clients to review the subcontract that has been prepared by the prime contractor, before our client signs it. While no two agreements are identical, there are a number of problematic contract provisions that appear in many agreements. Here is a list of ten such provisions (and their variations) that […]
When is a Mechanics Lien Premature?
It is well-established law in California that the latest date on which a mechanic’s lien may be recorded relates to the date of completion (or cessation) of the project work, or, if a Notice of Completion is recorded, to the date of the recording of that Notice. As to the earliest date a subcontractor or […]
Holding A Meeting Among Parties To A Dispute
There are occasions when a meeting (pre-litigation) among parties to a dispute with similar and/or opposing interests can be productive. Many contracts require parties to a dispute to “meet and confer” prior to initiating a formal claim. The purposes of such a meeting may include reviewing and discussing the issue, identifying any common interests and […]
“Time is of the Essence” Provisions in Contracts: What Does it Mean?
Certain phrases in our language originated as legal concepts. “Ready, willing and able” and “acts of God” are examples. Another such phrase is “Time is of the essence.” What is the legal significance of including this phrase in a contract?
Insurance Tips for Contractors
Many contractors contentedly accept the insurance policies presented to them by their insurance carriers. However, it is a much better practice to be an active participant in choosing the most appropriate coverage for your business and the specific jobs that you are performing. Use the following tips to be sure your company has the best and most comprehensive coverage.
