Taft Construction Practice Group
Creating the foundation for a solid future
Taft has been helping clients build their futures for more than 125 years. We are business attorneys who see the big picture. Our Construction Team has broad experience in the construction industry and can provide a solid legal foundation for the work you do. We can assist you with every aspect of your project, from start to finish, whether you are an owner, developer, design professional, contractor or supplier. Our construction team is as multifaceted as you are.
Let us provide the legal framework for all stages of your project so that you can concentrate on what you do best - building your future.
What Difference Does It Make? Pay If Paid vs. Pay When Paid
When does a subcontractor get paid for its work? Not surprisingly, this is one of the enduring major issues in subcontract agreements. The traditional provision is exemplified by AIA Document A401: "The Contractor shall pay the Subcontractor each progress payment no later than seven working days after the Contractor receives payment from the Owner."
If taken literally, this language would mean that if the contractor never gets paid by the owner, then the contractor is never required to pay the subcontractor. With rare unanimity, every state that has considered the issue in a reported decision currently has come to the conclusion that it should not be construed in that way. Rather, the courts say, this type of clause is intended to cover the timing of payment in the normal course, but if the contractor does not receive payment from the owner in the normal course, or within a reasonable time thereafter, the contractor remains obligated to pay the subcontractor the amount otherwise due. Thus, the clause is construed to apply only to the timing of payment and has come to be known as a "pay when paid" clause.
» continue reading
Ohio's Prompt Payment Act Revisited
Leverage is typically a critical element in any construction dispute, and parties should strategically use all available tools at their disposal to enhance their position when conflicts arise. Ohio's Prompt Payment Act (the "Act"), Ohio Revised Code § 4113.61, represents one such tool. The Act expands the remedies available to subcontractors and material suppliers for non-payment under certain circumstances, subject, however, to important defenses. When properly asserted, the Act is designed to create a strong incentive for general contractors and other upper tier parties to make timely payments due to all lower tier subcontractors, laborers and suppliers. Given the potential ramifications, it is very important for all parties involved in a payment dispute to understand the scope, benefits and risks associated with claims under the Act.
» continue reading
Construction Insight is used to inform our clients and friends of significant new developments and current issues in construction law. For more information about Taft Stettinius & Hollister LLP, please visit http://www.taftlaw.com.
These materials have been prepared by Taft Stettinius & Hollister LLP for informational purposes only and are not legal advice. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. No person or organization should act upon this information without first seeking professional counsel.
We cannot and do not represent you until our client intake process is completed. Further, we reserve the right to accept or decline representing any person or organization in any matter. Accordingly, please do not send us any confidential information about any matter until you receive a written statement from us advising you that we represent you (an "engagement letter"). When you receive an engagement letter from one of our attorneys, you will be our client, and we may exchange confidential information freely. Again, do not send us unsolicited confidential information until you speak with one of our attorneys and get authorization to send that information to us.
Some aspects of this Web site may allow you to register for newsletters, events, functions, or seminars hosted by, sponsored by, or associated with Taft Stettinius & Hollister LLP. The transmission or receipt of any information related to registration for any event or service does not create an attorney-client relationship.
Taft Stettinius & Hollister LLP's Web site and associated materials may provide links to other websites that may be useful or informative.These links to third party sites or information are not intended, and should not be interpreted by readers, as constituting or implying our endorsement, sponsorship or recommendation of the third party information, products or services found there.
The following statement is required by many states, including Kentucky: "THIS IS AN ADVERTISEMENT."
| || |