LEGAL: Key Contractual Payment Provisions and State Laws

 

Making Dollars and "Cents" of Key Contractual Payment Provisions and How State Law Can Impact your rights

Clauses that can affect your right to payment in different U.S. states


By Ashley Sherwood and Dan W. Ballesteros, Seyfarth Shaw LLP

In contracts that can sometimes be hundreds of pages, the provisions that contractors (and their attorneys) scrutinize the most concern payment. But it is not just the obvious payment application or interest clauses that can impact a contractor's right to payment. Indemnity, no-damages-for-delay and pay-if-paid clauses can drastically impact when a con- tractor sees the money. Adding another layer of complexity are statutory nuances about which contractors need to be aware. Construction laws vary from state to state and can, in some cases, invalidate what would otherwise be enforceable contract language. Subcontractors, in particular, should safeguard themselves, as state-law protections do not always trickle down past the prime contractor level.

Most statutory payment provisions fall into three categories (1) timing of pay- ment; (2) conditions of payment; and (3) 
bases for non-payment. This article discuss- es typical contractual clauses impacted by statute and provides examples on how state law may apply to your project and impact your rights. While not every payment-relat- ed issue or state law is covered in this article, contractors and subcontractors of all sizes and specialties should come away with a better understanding of what to look for in their existing contracts, and what to push back on during their next negotiation.

CLICK HERE TO READ THE FULL ARTICLE


 

Posted in PileDriver Magazine.

PileDriver Magazine - Issue #3 2023

 


In this issue of PileDriver magazine, read about how Cape Romain Contractors has built South Carolina's iconic Folly Beach Pier twice, once in the early '90s and again in 2022. The new pier is 22 feet above sea level and supported by concrete pilings as opposed to the timber pilings that the previous pier was on. About 40 of the 228 PCCPs had to be lengthened with 30-foot steel stringers. Read about this interesting job and its unique challenges in the newest issue of PileDriver.

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Project Spotlight:
NYC Ferry Homeport II Site
Trevcon Construction project manager Anika Alam walks us through how the Trevcon team is progressing as it helps facilitate the growth of NYC's waterfront transportation system.

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International Construction Equipment, Inc.'s Debbie Reaney talks about H.B. Fleming's work on the massive infrastructure upgrades currently underway in Maine, aimed at protecting local waterways.

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Technical:
Driven Piles Outperforming Drilled Micropiles
Experts from Geosciences Testing and Research, Inc. give us a thorough look at an innovative driven pile solution for the Rhode Island Route 6/10 Interchange project.

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Legal:
Key Contractual Payment Provisions and How State Law Can Impact Your Rights
Seyfarth Shaw LLP breaks down different clauses that can affect your right to payment in different U.S. states. If you like getting paid, don't skip this article.

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Remembering "Industry Icon" Mike Elliott, 1949-2023


In February 2022, the PDCA South Carolina Chapter honored Mike Elliott for 50 years of contributions to the pile driving industry.

In addition to his long, successful career in the piling industry, Mike Elliott was also an important volunteer at PDCA when the organization was still in its infancy and had a staff of only one. As one past president told us, Mike donated significant time and resource to help create some of the early Annual Conferences, among other events.

For many years, Mike was President of Pile Equipment, Inc. near the PDCA offices in Florida. His time was flexible and his passion for pile driving burned bright, inspiring him to regularly volunteer on PDCA initiatives. As the years passed, Pile Equipment was acquired by Equipment Corporation of America (ECA), a stalwart PDCA supporter and a great fit for Mike where he continued to serve the industry as Vice President and Jacksonville Branch Manager. That is where he concluded his career in 2021.

Like many of you, we at PDCA were saddened to learn of Mike's passing on June 9, 2023. Through a poignant social media post from his last employer, ECA company President/CEO Roy Kern accurately stated in the post that Mike was 'an industry icon,' and that sentiment is shared far and wide. If you missed the post, please see below:



Shortly following Mike's retirement from ECA, PileDriver magazine published a Career Story chronicling his remarkable time in deep foundations equipment. If you would like to re-read the article, you can access it by clicking "Mike Elliott: Newly Retired After 50 Years, Now Teaching and Consulting." 
 
Watch for Issue #4-2023 of PileDriver magazine, coming this August, which will include an In Memoriam that will feature memories and quotes from many of Mike's friends and former colleagues. If you would like to submit your thoughts about Mike Elliott, please email matt@piledrivers.org.

PDCA thanks Mike for his years of support of this organization and his decades advancing the driven pile industry. Our deepest sympathies are with his loving wife, Suzie, and children Justin and Lindsey. 


Thank you Mike Elliott!





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