Originally posted 2011-11-04 09:00:46. On numerous occasions, I have discussed the need to be careful with so-called “pay if paid” clauses in construction contracts. While such clauses are enforceable in Virginia (when phrased correctly), there are exceptions and limitations (for instance in the Miller Act context). One such exception (that I frankly would have thought […]
Miller Act Bond Claims Subject to “Pay If Paid”. . . Sometimes
Originally posted 2014-07-09 09:44:02. The Federal Miller Act is a great tool that subcontractors and suppliers on Federal projects can use for collection of wrongfully withheld amounts due. However, as a recent federal case from the Eastern District of Virginia points out, the construction contract’s terms affect when a subcontractor or supplier can use this […]
Reminder: Don’t Let Holiday Cheer Blow Your Deadlines
As we enter the month of December, thoughts of the holidays start to enter our heads. Holiday music, shopping, smiles and a warm fire tend to take one’s thoughts away from business and toward family. What could go wrong during this chilly, somewhat hectic, but joyful time of year? I hate to be a Grinch, […]
No Setoff Between Bonded and Non-Bonded Projects
As any reader of Construction Law Musings knows, payment bond claims are a big part of my law practice. You have also likely read through the federal cases relating to the Miller Act that you can find here. On trend in these federal cases in the Virginia district courts is that determining set off rights […]
The Nuts and Bolts of a Payment Bond Claim in VA
After a week off from posting, much of it dealing with payment bond claims, I am back with a basic, but necessary refresher on these claims. A payment bond on a construction project (whether private or public) gives an unpaid subcontractor or supplier another collection option outside of a breach of contract action, or in […]