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Article Date: 01/11/2013


Subcontract Clause Did Not Clearly Shift Risk of Owner Nonpayment


A subcontract payment clause that made payment by the project owner to the contractor a “condition precedent” to the contractor’s obligation to pay the subcontractor could not be enforced against the sub. The clause failed to enunciate the sub’s assumption of nonpayment risk in plain language.

 



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