Supplemental Conditions

Monthly Archives: January 2012

7 Essential Construction Contract Clauses: Termination for Convenience (Part 4 of 7)

Posted in Construction Law

The proposition that a contractor can be terminated for non-performance is unremarkable and well understood. However, nearly all public project construction contracts and many large private project contracts contain language that permits a general contractor or owner to terminate the contract at any time without cause. Clauses that grant an owner or general contractor the… Continue Reading

Mechanics Lien Earthquake: Everything You Learned About the Pennsylvania Mechanics Lien Law Is Now Wrong.

Posted in Mechanics Liens

For years construction lawyers in Pennsylvania have been taught that the requirements of the Mechanics Lien Law must be strictly followed or a mechanics lien claim will be stricken and lost.  In decades of precedent, it has been repeatedly stated that the Pennsylvania Mechanics Lien Law is a “creature of statute in derogation of the… Continue Reading

7 Essential Construction Contract Clauses: Pay-When-Paid v. Pay-If-Paid (Part 3 of 7)

Posted in Contracts

Terms and timing of payment are critical. A subcontractor that cannot manage cash flow is doomed. For terms of payment, most construction contracts use either a pay-when-paid or a pay-if-paid clause. Understanding the often subtle difference between the two is important for understanding when a subcontractor can expect payment. 1. Pay-when-paid. A pay-when-paid clause is… Continue Reading

7 Essential Construction Contract Clauses: Flow Down Clauses (Part 2 of 7)

Posted in Contracts

Subcontractors need to make sure that they are aware of all of the terms they are agreeing to in the subcontract. Many subcontracts contain so called “flow down” or incorporation by reference clauses, which incorporate the terms of the general contractor-owner agreement and bind the subcontractor to the general contractor to the same terms that… Continue Reading