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Clause Established Only Timing Of Final Payment Payment-final; Condition Precedent

Friday, February 03, 2006 05:15 pm

 
Clause Established Only Timing Of Final Payment Payment-final; Condition Precedent

An Alabama court has ruled that a pay-when-paid clause in a subcontract established the timing of final payment but did not make payment by the project owner a condition precedent to the sub's entitlement.

The Board of School Commissioners of Mobile County awarded a contract to Lee J. Saad Construction Co., Inc. to build a middle school building. Saad furnished payment and performance bonds issued by Hartford Accident & Indemnity Co. Saad subcontracted the plastering and stucco work to Cochran Plastering Co., Inc.

The subcontract contained the following [...]

 
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