September 6, 2010
Those clauses can really hurt the subs … …
Comment posted on ConstructionLawMonitor.Com: Pay When Paid Clauses and Lien Rights by Timothy R. Hughes
Those clauses can really hurt the subs … the interesting wrinkle here in Virginia is that there is a significant 4th Circuit case stating that sureties cannot rely on the clauses unless they are expressly incorporated into the terms of the bonds. Not sure what your state’s law is like on this point, but that can be an escape clause.
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Really nice, handy chart Scott!!I missed this when it went up to begin with, randomly ran across it now, this is very helpful.
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Those clauses can really hurt the subs … the interesting wrinkle here in Virginia is that there is a significant 4th Circuit case stating that sureties cannot rely on the clauses unless they are expressly incorporated into the terms of the bonds. Not sure what your state’s law is like on this point, but that can be an escape clause.