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Contractor Waived Progress Payment Procedures Payment-progress; Waiver

Sunday, October 03, 2004 02:54 pm

Contractor Waived Progress Payment Procedures Payment-progress; Waiver

A federal court has ruled that a prime contractor waived the progress payment provisions of a subcontract. The prime could not use the sub's noncompliance to excuse nonpayment.

The Department of Veterans Affairs awarded a contract to John Edwards Construction Co. for renovation of a hospital in Hines, Illinois. Edwards subcontracted the fabrication and erection of the structural steel to Advance Iron Works, Inc. The subcontract incorporated AIA Document A201, "General Conditions of the Contract for Construction."

The General Conditions called for Edwards to make monthly [...]

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