Comments on: Louisiana Liens: Guidelines for Materials Suppliers http://constructionlienblog.com/2009/09/louisiana-liens-guidelines-for-materials-suppliers/ Wed, 08 Feb 2012 22:08:09 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Scott Wolfe Jr http://constructionlienblog.com/2009/09/louisiana-liens-guidelines-for-materials-suppliers/comment-page-1/#comment-4727 Scott Wolfe Jr Tue, 15 Mar 2011 14:32:09 +0000 http://constructionlienblog.com/?p=700#comment-4727 Hi Rodney. Thanks for visiting and for your comment. To my knowledge, there aren't any laws out there allowing contractors to withhold payment from subs and/or suppliers until they get paid from the owner. You may be thinking of a "pay when paid" clause, which exists in many construction contracts. Since parties to a contract may contract for whatever set of payment rules they want, the parties to a construction contract may agree in writing that the subs/suppliers will not be paid until the general contractor is paid from the owner. When this agreement is made, a general contractor may be able to withhold payment until it is paid from the owner. That is a product of their contract, and not the law. With that said, you must be careful with pay when paid clauses. Each state treats them differently, with some states overturning them and some states upholding them, and then other states interpreting them strictly. Take a look at some of these articles I've written on my other blog, the Construction Law Monitor, regarding this issue: http://www.constructionlawmonitor.com/tags/pay-when-paid/ Hi Rodney. Thanks for visiting and for your comment. To my knowledge, there aren’t any laws out there allowing contractors to withhold payment from subs and/or suppliers until they get paid from the owner. You may be thinking of a “pay when paid” clause, which exists in many construction contracts. Since parties to a contract may contract for whatever set of payment rules they want, the parties to a construction contract may agree in writing that the subs/suppliers will not be paid until the general contractor is paid from the owner. When this agreement is made, a general contractor may be able to withhold payment until it is paid from the owner. That is a product of their contract, and not the law.

With that said, you must be careful with pay when paid clauses. Each state treats them differently, with some states overturning them and some states upholding them, and then other states interpreting them strictly.

Take a look at some of these articles I’ve written on my other blog, the Construction Law Monitor, regarding this issue:

http://www.constructionlawmonitor.com/tags/pay-when-paid/

]]> By: Rodney Neumeyer http://constructionlienblog.com/2009/09/louisiana-liens-guidelines-for-materials-suppliers/comment-page-1/#comment-4686 Rodney Neumeyer Thu, 10 Mar 2011 21:08:53 +0000 http://constructionlienblog.com/?p=700#comment-4686 I want to know if their is a Law set that the Contractor does not have to pay is suppliers and or its subcontractors ontell he gets paid from the owner, which is some cases may take months. I want to know if their is a Law set that the Contractor does not have to pay is suppliers and or its subcontractors ontell he gets paid from the owner, which is some cases may take months.

]]>