Construction Releases

3 Mar, 2019

Subcontractor Loses Lawsuit for Payment Because it Failed to Furnish a Release

2019-03-03T17:43:27-05:00March 3rd, 2019|Categories: Uncategorized|Tags: , |

What you need to know: Conditions precedent are used frequently in construction contracts. A “condition precedent” is something that must occur before performance by one party becomes due. For example, a contractor’s contract with a subcontractor may state, “Receipt of owner’s payment is a condition precedent to contractor’s obligation to pay subcontractor.” Courts will typically enforce conditions that are clear and unambiguous. In Team Land Development, Inc. [...]

1 Mar, 2019

Owner Relies on Forged Lien Releases, Proper Payments Defense to Defeat Subcontractor’s Lien

2019-03-03T17:26:08-05:00March 1st, 2019|Categories: Construction Liens|Tags: , |

What you need to know: A project owner may rely on a lien release in a subcontractor's name, even though the release was forged by the contractor and the subcontractor did not receive payment. If the owner complies with the requirements of the lien law, its liability for lien claims will not exceed the direct contract price. This is known as the “proper payments” defense. In Continental Concrete, Inc. v. Lakes [...]

20 Jan, 2019

Construction Releases Are Contracts

2019-02-16T11:11:00-05:00January 20th, 2019|Categories: Construction Contracts|Tags: |

In Spectrum Interiors, Inc. v. Exterior Walls, Inc., 2 So. 3d 1093 (Fla. 5th DCA 2009), Spectrum Interiors, Inc. (“Subcontractor”) was a subcontractor that subcontracted the stucco scope of work to the sub-subcontractor Exterior Walls, Inc. (“Sub-subcontractor”). Sub-subcontractor filed suit for non-payment. Subcontractor defended on a release that Sub-subcontractor had given. In the release, Sub-subcontractor represented that it: 1. had been paid in full through September 30, 2003; 2. did not [...]