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Expert Analysis

2 Key Factors In Pay-If-Paid Construction Payment Disputes

By Bob Cox (October 7, 2019, 3:51 PM EDT) -- A construction project can be a breeding ground for payment disputes between a general contractor and its subcontractors. When the general contractor has provided a payment bond for the project, the payment bond surety is often the target of a subcontractor's lawsuit for payment. When that lawsuit stems from the project owner not paying the general contractor the monies the subcontractor claims to be due and the general contractor has not paid the subcontractor because the subcontract includes a pay-if-paid clause, may the payment bond surety rely on that conditional payment clause as a defense to the subcontractor's payment bond claim?...

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