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Deadly Terms in Construction Contracts

The relationships between Owners, General Contractors and Subcontractors should be defined by written contracts.  There are terms in these contracts which can be "deadly" for all parties involved.  Owners need to watch out for waivers and limitations of liability.  General Contractors need to coordinate the payment schedules, insurance requirements and project schedules with both Owners and Subcontractors.  Subcontractors should beware of unfair indemnity clauses and pay-if-paid clauses.  These are just a few of the dangerous clauses which can become "deadly."  Durazzo, Eckel and Hawkins, PC provides construction contract review services and training regarding...
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The Arizona Prompt Pay Act and Owner-Occupied Dwellings

The Arizona Prompt Pay Act provides numerous benefits and protections for contractors.  The benefits include a right to timely payment, 1.5% interest per month on unpaid invoices, and the right to stop work for non-payment (after notice).  However, the Act only applies to Owner-Occupied Dwellings if the contractor includes certain language on the front page of all its estimates and invoices.  The statutory language is as follows: Notice to owner of applicability of Arizona prompt pay act (Notice required by Arizona Revised Statutes section 32-1129.07) Attention: Your obligations to pay your contractor are subject to the...
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Construction Contracts

Construction contracts seem to get lengthier every year.  All contractors should be aware of all the terms relevant to their contract.  This usually includes terms in the prime contract, the plans, the specifications, general conditions, construction manuals, exhibits, addenda and any number of other documents.  You must read it all and understand it all.  Otherwise, you may be agreeing to terms that could put your company out of business.  Plus, you may think you are protected by your bid, but that may not be true.  Unless your bid terms are made a part...
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