ConstructionLawMonitor.Com: Pay When Paid Clauses and Lien Rights

By on September 18, 2009

Our good friends over at Wolfe Law Group (ok, it was me) have put up an article on the trials and tribulations facing subcontractors due to the use of the dreaded “Pay When Paid” clause.

See their article here and how these clauses work. As a contractor you need to be aware of your right to payment and potential roadblocks on the way to getting paid.

One of the most important defenses to the “Pay When Paid” clause is your right to lien a project, and consequently the owner. Since the owner’s failure to pay the general contractor has caused your inability to recover payment, a lien will allow you to proceed against that party in  a legal action for payment.

Read the article to better understand your rights and the tools you can use to ensure payment. Remember that owners and surety bonds can reached with a properly filed lien.

Contact Zlien.Com in order to protect your right to payment.

ConstructionLawMonitor.Com: Pay When Paid Clauses and Lien RightsDid you enjoy this article?
ConstructionLawMonitor.Com: Pay When Paid Clauses and Lien Rights
Share
the
Love
Get Free Updates

, , , , ,

About Scott Wolfe Jr

Scott Wolfe Jr. is the CEO of Zlien, a company that provides software and services to help building material supply and construction companies reduce their credit risk and default receivables through the management of mechanics lien and bond claim compliance. He is also the founding author of the Lien Blog, a leading online publication about liens, security instruments and getting paid on every account. Scott is a licensed attorney in six states with extensive experience in corporate credit management and collections law, with a specific emphasis on utilizing mechanic liens, UCC filings and other security instruments to protect and manage receivables. You can connect with him via Twitter, LinkedIn and Google+.Read Scott's Biography Post Here
View all posts by Scott Wolfe Jr →

One Pingback/Trackback

  • http://www.valanduseconstructionlaw.com 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.

  • Pingback: Arbitration Clauses Create A Mechanics Lien Mess | Arbitration