Construction Payments Held in Trust—Another Tool to Pursue Payment

2019-06-10T11:05:33-06:00June 11th, 2019|Construction Contractor Advisor, Construction Contracts, Trust Fund|

Construction contracts often require contractors to receive and hold payments in trust for the benefit of paying labor and materials furnished on a project.  The purpose of the trust is to protect downstream contractors and suppliers from the risk of nonpayment of their claims against a financially distressed contractor. Trust Contract Provision A typical trust provision provides: All sums received by Contractor under this Contract are received by Contractor in [...]