The Connecticut Appellate Court Has Finally Weighed In On “Pay-If-Paid” Provisions In Construction Contracts, And The Decision Should Concern Subcontractors.

Perhaps the most consequential provision in any construction contract is the so-called “pay-if-paid” clause. This provision transfers the risk of owner nonpayment from the general contractor, who traditionally bears the risk, to the subcontractor, who is less able to assess a project owner’s creditworthiness or exert pressure on a nonpaying owner. In most jurisdictions, pay-if-paid clauses are disfavored by courts Read More

Confused about whether you can require your employees to get vaccinated for Covid-19 in Connecticut? Read on …..

By: Attorney Beth N. Mercier On January 13, 2022, in the case of Biden v. Missouri, et al, 595 U. S. ____ (2022) the United States Supreme Court blocked the Occupational Safety and Health Administration (“OSHA”) vaccine mandate for private companies with 100+ employees.   Relying on the Supreme Court’s decision, a federal district judge in Texas issued an injunction on January 22, 2022 temporarily blocking Read More

“Slaughter Clauses” Ruled Illegal for Listed Subcontracts on State of Connecticut Construction Projects

By: Steven B. Kaplan, Esq. Electrical Contractors, Inc.  v. Lawrence Brunoli, Inc. and North American Specialty Insurance Company, Docket No: X-07 HHD CV-20-6129731, Superior Court – Complex Litigation at Hartford     This case was brought by ECI, a listed electrical subcontractor on a State of Connecticut construction project, against the general contractor.  The Memorandum of Decision issued by the trial Read More

Key Mechanic’s Lien Requirements in Connecticut, Massachusetts, and New York

By: Carolyn A. Young, Esq. A mechanic’s lien is often a contractor’s most powerful leverage to ensure prompt payment on private construction projects. As your business expands into multiple states, it can be increasingly difficult to keep track of the various statutory deadlines to enforce these important lien rights. This article provides an overview of the key deadlines and requirements to protect your Read More

Not getting paid on that public job? Quick, make your payment bond claim!

By: Beth N. Mercier, Esq. Making a statutory payment bond claim pursuant to Connecticut General Statutes section 49-42 is an inexpensive and effective way to get paid on a public construction project in the State of Connecticut.  Unfortunately, many contractors fail to make their claims within the required time limits or in the proper manner.  First, determine whether the public works project has a payment Read More

“Pay-if-paid” provisions in construction contracts have always been a problem for subcontractors. A recent Connecticut Superior Court decision has made the problem worse.

By: Paul R. Fitzgerald, Esq. A common provision in a construction contract is the “pay-if-paid" clause.  The purpose of a pay-if-paid clause is to permit the general contractor to withhold payment from its subcontractor unless and until the general contractor’s application for payment is accepted and paid by the project owner.  From the general contractor’s perspective, this clause is not only reasonable, but Read More

Weed At Work: What Accommodations Must Connecticut Employers Make For Medical Marijuana Users?

By: Carolyn A. Young, Esq. In 2012, Connecticut passed the Palliative Use of Marijuana Act (PUMA)(Conn. Gen. Stat. §21a-408 et seq), which permits “qualifying patients” to use marijuana for the treatment of certain medical conditions. Connecticut’s medical marijuana law is part of a larger trend nationally to decriminalize and regulate the use of marijuana for both medical and recreational purposes, which in turn Read More

The General Contractor Wants To “Bond Off” My Mechanic’s Lien. What Does That Mean, And Should I Agree To the Substitution of a Bond for My Lien?

By: Paul R. Fitzgerald, Esq.   Mechanic’s liens force property owners to deal with subcontractor claims.  Liens create serious problems for owners: a lender will not advance funds on a construction project until the lender is satisfied that all subcontractors and suppliers have been paid, and liened property cannot be sold until all liens have been satisfied or discharged.  Since liens create so many Read More

You Don’t Have to be a Mechanic to File a Mechanic’s Lien: Understanding What Types of Services Are Lienable in Connecticut

By: Paul R. Fitzgerald, Esq. A mechanic’s lien is an extremely effective tool for getting paid on privately-owned construction projects. However, not everyone who provides services in connection with such projects is entitled to file a lien. Connecticut courts are routinely asked to decide whether certain types of services are lienable, including landscaping work, snow and debris removal, the provision of rental Read More

A Mechanic’s Lien Is Not Your Only Option: Connecticut’s Fairness in Construction Financing Act Will Also Get You Paid

By: Paul R. Fitzgerald, Esq.   As regular readers of this newsletter know, a mechanic’s lien is a tremendously effective tool for getting paid on private construction projects.  Oftentimes, just the threat of a lien will facilitate prompt payment.  However, there may be times when it is not possible or advisable to file a lien.  For example, you may have missed the deadline to file.  Or perhaps there is Read More