Better Construction Through Fair Construction

“American Subcontractors Association of Metro Washington promotes and protects the rights and interests of subcontractors and suppliers by building strength in community through education, legislation, networking and professional growth."

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How Unfair Contract Clauses Prevent Subcontractors from Getting Paid
By Jonathan Mitz

In the world of contracting, cash flow is the most important measure of contractor health.   Contractors who perform labor and buy materials are the most vulnerable to cash fluctuations.  Payment delays put more contractors out of business than any other cause. 

In the contracting hierarchy, Owners draft the prime contract. It is full of clear language that requires specific performance for payments to be made.  The next level down is the General Contractor, who drafts the subcontract agreement.  It is full of obvious and subtle language that protects the GC from paying the subcontractor unless the GC has been paid by the Owner.  

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