By Bruce Jervis
Two recent cases involving the waiver of subcontract “pay-if-paid” clauses illustrate the uncertainty of enforcing these provisions. In one case, the prime contractor waived the right to enforce the clause against the subcontractor. In the other case, the contractor narrowly averted a waiver.
Pay-if-paid clauses shift the risk of project owner nonpayment from the prime contractor to the subcontractor. The contractor’s obligation to pay the subcontractor is contingent upon the contractor’s receipt of payment from the owner for the sub’s work. A number of jurisdictions have rendered pay-if-paid clauses unenforceable by statute or court ruling. In the majority of jurisdictions, however, these clauses -- if properly drafted -- are enforceable … unless they are waived. ... Read more.
Featured in this Week’s Construction Claims Advisor:
- Contractor Did Not Waive ‘Pay-If-Paid’ Clause
- Lead Paint Particles Were Type II Differing Site Condition
- Ambiguous Solicitation Created Risk of Double Payment
By Steve Rizer
What is the first step that should be taken when trying to avoid disputes in a construction project? During a webinar that WPL Publishing held last week, Roy Mitchell, a mediator and arbitrator who serves as the Center for Management Development and Training Inc.’s chairperson, discussed what he believes this step should be as part of a larger strategy to prevent disputes. ... Read more.
There is still time to register for the American Bar Association (ABA) Forum on the Construction Industry's annual meeting, entitled "Surfing the Next Wave: The Future of Construction Law and Practice," which will take place April 25-27 in Dana Point, Calif. The event will focus on technological advances for construction projects; the future of government regulation for preference programs and workforce issues; the future of construction insurance, bonding, and construction law practice; and the globalization of construction alternative dispute resolution. ConstructionProNet is proud to be a sponsor of the ABA Forum on the Construction Industry 2013 Annual Meeting. For additional information about the meeting, click here.
By William Ibbs and Farid Saddik
The Critical Path Method (CPM) has been a staple of industry scheduling practice for more than 50 years, and the software that has arisen around CPM has evolved substantially in the past 30 years. That evolution to some extent has been good and to some extent bad. We believe that the construction management community in general, and schedulers in particular, have a lot of experience and wisdom to share. Our goal, through a series of articles such as this one, is to stimulate discussion about both the CPM methodology and the software. We start with a short review of CPM history, followed by a discussion of the application of “dynamic modeling,” to common CPM activity components, including durations, relationships, and constraints. Feedback is therefore definitely welcome. ... Read more.