Shopping Cart (0) items Sign In

Construction Claims Monthly - Devoted exclusively to the problems of construction contracting since 1963

‹ Prev article: 

Default Was Exception To "Pay-if-paid" Clause Payment-final; Subcontractors

Saturday, April 09, 2005 02:40 pm

Default Was Exception To "Pay-if-paid"Clause Payment-final; Subcontractors

A Texas court has ruled that when prime contractor default was an express exception to a "pay-if-paid"clause in a subcontract, the project owner's declaration of default was sufficient to trigger the prime's payment obligation. The sub was not required to prove default.

The Port Neches-Groves Independent School District awarded a contract to Pyramid Constructors, L.L.P. for expansion and renovation of a high school building. Pyramid subcontracted the heating, ventilation and air conditioning work to Sunbelt Controls, Inc. The subcontract contained the following provision. [...]

› Next article: 
Sign up now for Construction Claims Monthly Online! Your own virtual help desk of must-have techniques, tutorials, and how-to articles.
Join Now Construction Claims Monthly! Close