Getting Familiar With Misunderstood Contract Terms Part 1
Regardless the level of experience a construction professional may have, there is still room for gross misinterpretation when it comes to contracts, and as Tampa construction attorneys, we know this to be true due to the myriad of cases we represent due to some contract discrepancy in one form or another. This is why we specialize in contract review and drafting and have experience reviewing and revising hundreds of contracts including all major ConsensusDOCS, American Institute of Architects (AIA), and Associated General Contractors (AGC) forms.
Due to common misinterpretations, we’ve compiled a list of commonly misunderstood contract terms. In Part 2, we’ll continue our list.
Pay-If-Paid and Pay-When-Paid
Payment is one of the biggest areas of concern for all in the construction. The terms pay-if-paid and pay-when-paid indicate how a contractor is paid. Contracts with a pay-when-paid term mean the subs won’t get paid until the owner pays the general contractor. The pay-if-paid term means that if the general contractor is not paid, the subs may not get paid either. If you’re concerned about securing payment, contact a Tampa construction lawyer to ensure you get paid no matter what.
Mechanics’ liens are often confused because they are incredibly complex, but understanding your rights under Florida lien law is vital for securing payments. Mechanics’ liens enable a contractor to place a lien on a property until payment is received for the work performed or to a supplier who has furnished materials. Whenever you deal with a lien, we recommend you contact one of our Tampa construction lawyers since any missed deadline can jeopardize your right to place a lien on a property or cause an owner to pay twice for the same work.
When Disagreements Happen
If contract parties disagree on any of the above terms, they will end up pursuing mediation, arbitration, or a litigation. All of this can be avoided if parties do their due diligence to scrutinize contracts before signing them. If after reviewing the contract, terms are still unclear, a legal expert is recommended to ensure the contract is sound for all parties involved.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.