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20 Jun, 2019

Make Sure to Pass on Subcontractor Claims

2019-06-19T09:18:13-05:00June 20th, 2019|Construction Contractor Advisor, Construction Damages, Liquidating Agreement|

When a contractor receives a delay claim from a subcontractor, it’s important to pass on the claim to the owner or the contractor could be liable for the subcontractor’s entire claim.  A recent decision out of New York underscores the importance of passing subcontractor claims to the owner. In the case Rad and D’Aprile, Inc.v Ariel Construction Corp., the subcontractor, Rad, made a claim for delay damages to the general [...]

30 Aug, 2015

Liquidating Agreements—Bridging the Privity Gap for Subcontractors

2018-04-23T23:55:10-05:00August 30th, 2015|Construction Contractor Advisor, Construction Contracts|

What is a subcontractor to do when the owner has demanded additional work, but has refused to pay for it?  Typically, a subcontractor cannot sue the owner because the subcontractor doesn’t have a contract with the owner.  Perhaps the subcontractor and general contractor should enter into a liquidating agreement through which the general contractor can pursue the claim on behalf of the subcontractor. Liquidating agreements bridge the privity gap between [...]