This is the third part in this series. Part Two of this series discussed purchase order contracts for materials which may have a force majeure clause of some description (including possibly in online terms). Where there is no explicit force majeure clause, suppliers should look to the Uniform Commercial Code (UCC) which provides an integrated
Construction Material Suppliers in the COVID-19 World: Purchase Order Contracts with Force Majeure
This is the second part in this series. Part one addressed force majeure clauses in construction contracts and how a material supplier may have bound itself to all the terms of the general contractor’s contract documents. That incorporation can bring the force majeure clause into play for a supplier. It also bypasses the underlying Uniform
Construction Material Suppliers in the COVID-19 World
Construction is an essential business under Minnesota’s Stay at Home order. The order itself, has not shuttered construction projects—yet–but there are many other potential impacts of the current COVID-19 crisis on those projects including disruption of supply chains.
Most prime contracts and many subcontracts include force majeure clauses to address the impacts of unforeseen events.
Warranty? What warranty?
Sometimes construction material or equipment the contractor buys turns out to be defective. It leaks. A part is missing. Something simply does not function straight from the box. Jumping on the defect claim may not seem to have highest priority in the middle of a construction project. “Back charge” may the automatic response, but it
What Happens If You Don’t Have A Lien?
In each state, statutes govern the right to a construction lien. It is almost inevitable that someone, someday, will not meet a required step. The lien is lost, and with it, whatever leverage or payment security it represented.
There is still a balance to collect—unless the creditor has improvidently signed something that also waives the
Can a “Pay If Paid” Clause Bar Lien and Bond Claims in Minnesota?
This continues our blog post series on protecting payment in the construction industry. In this post, we ask the question, “Can a Pay If Paid clause bar a Minnesota lien or bond claim?” Despite the contract language, the answer might be: no.
Contingent payment language is common in contracts between prime contractors and subcontractors. The
What Surprises Lurk In That Certificate of Insurance?
This is a relevant concern not only for any project owner or developer that requires a certificate of insurance from the prime contractor. Certificates of insurance are used so commonly as proof of insurance that they may tend to be a “check the box” item that just goes into the project file without a careful
Slow Paying Customers Can Bring a Contractor Down
This is the eighth in our series of posts on protecting the right to payment in the construction industry. I have recently seen a couple of blog posts highlighting a survey from late summer (Rabbet Partners and Procore; 2019 Construction Payments Report). The survey reported that the direct and indirect costs of slow payment to
The Importance of Lien Waivers
Lien waivers do not get the respect they deserve in the realm of protecting the rights to payment in construction. In a prior post in this series we shifted the focus to the owner’s perspective on the problems of liens and payment including the need for collecting lien waivers. Lien waivers are important to both
Using Payment Bonds to Protect Payment Rights in Construction
This is the sixth post in our Construction series, Protecting Payment. In the last post I suggested surety bonds as one way an owner could either avoid or “remove” liens. Consistent with our focus on the theme of protecting the right to payment, this post will focus on payment bonds for private construction. Payment bonds