Pay-if-paid and pay-when-paid clauses permeate large construction projects In theory, the clauses protect a contractor from downstream liability where its upstream or hiring party (usually the owner) fails to pay. Beal Bank Nevada v. Northshore Center THC, LLC, 2016 IL App (1st) 151697 examines the fine-line distinction between PIP and PWP contract terms. a lender …
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Illinois Mechanics’ Lien General Contractor Doesn’t Morph Into a Subcontractor When Property is Sold Before Recording
Q: Does a general contractor transform into a subcontractor where a property owner sells its property to a third party AFTER the general contractor completes its improvements but BEFORE it records its mechanics lien? A: No. Q: Does it matter? A: Yes. Because unlike a general contractor, a subcontractor must serve a 90-day notice to the new owner in order …