The “Pay When Paid” Clause in California Construction—Strategies as the Battle Continues
August 03, 2026 —
William L. Porter - Porter Law GroupIt is well known in California Construction circles that the “Pay If Paid” clause is illegal in this state. There is a great distinction, though, between this clause and a similar clause, known as a “Pay When Paid” clause. A pay if paid clause allows a contractor to tell a subcontractor that if the contractor is unpaid for the subcontractor’s work, then the contractor has no legal obligation to pay the subcontractor, ever. For a great variety of reasons, the California Supreme Court, in the case of Wm. R. Clarke Corp v. Safeco Ins. Co. of America (1997) 15 Cal.4th 882, declared this type of clause illegal in California Construction.
Although the pay if paid clause is illegal in California, the pay when paid clause is still perfectly legal and is found in many subcontracts that contractors issue to their subcontractors. The pay when paid clause allows a contractor to delay paying its subcontractors until the dispute between the contractor and the property owner over payment has been resolved and the contractor is paid by the property owner. Although seemingly reasonable (since it merely delays payment until the contractor is paid by the owner, thereby providing a funding source to pay subcontractors), significant problems still arise.
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William L. Porter, Porter Law GroupMr. Porter may be contacted at
bporter@porterlaw.com
NJ Public Works Contractors Beware – Pay Special Attention When Submitting Your Public Works Contractor Registration
May 26, 2026 —
Levi W. Barrett & Aaron C. Schlesinger - Peckar & Abramson, P.C.While it is always important to be careful when making submissions to government agencies, recent activity by the New Jersey Department of Labor and Workforce Development (“NJDOL”) reveals considerably increased scrutiny in connection with contractors renewing their New Jersey Public Works Registration. Extra care when completing the registration renewal process is warranted, because the consequences of a misstep can be significant and disruptive.
The New Jersey Public Works Contractor Registration Act requires all contractors bidding on or engaging in construction-related public works projects to register with the NJDOL. This registration, which must be resubmitted every 1-2 years, requires contractors to make a number of detailed disclosures relating to, among other things, the entity’s ownership structure, prior state and federal labor law violations, details regarding interests in other businesses, unlawful acts by owners/officers, and participation in apprenticeship programs.
Reprinted courtesy of
Levi W. Barrett, Peckar & Abramson, P.C. and
Aaron C. Schlesinger, Peckar & Abramson, P.C.
Mr. Barrett may be contacted at lbarrett@pecklaw.com
Mr. Schlesinger may be contacted at aschlesinger@pecklaw.com
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Nevada’s Mandatory Nonbinding Arbitration Law for Civil Cases is Going Through Changes
May 14, 2026 —
Brandon Wright & Manuel Gurule - Lewis BrisboisNevada currently operates an expedited litigation program designed to resolve civil disputes with a value up to $50,000 without incurring the “usual” expense of litigating these disputes. Over time, however, the number of civil cases that have been “exempted” from this program based on the claimed damages exceeding $50,000 has grown dramatically. In response, the Nevada Legislature recently enacted a number of rule changes designed to streamline Nevada’s arbitration process and include more cases. Among these changes are increasing the arbitration “cap” from $50,000 to $100,000.
By way of background, the Nevada’s Court Annexed Arbitration program is a mandatory, non-binding program for civil cases in judicial districts that have county populations of 100,000 or more [1]. Nevada’s Court Annexed Arbitration was born out of NRS 38.250, which was enacted in 1991 and went into effect in the summer of 1992. The newly enacted NRS 38.250 was regarded as a way to address the problem of increased court caseloads while promoting judicial economy and efficiency in civil cases having a probable jury award of less than $25,000 [2]. Initially, cases that were automatically exempt from the program included class actions, medical malpractice disputes, divorce proceedings, and other domestic relations matters [3].
Reprinted courtesy of
Brandon Wright, Lewis Brisbois and
Manuel Gurule, Lewis Brisbois
Mr. Wright may be contacted at Brandon.Wright@lewisbrisbois.com
Mr. Gurule may be contacted at Manuel.Gurule@lewisbrisbois.com
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Arizona Supreme Court Clarifies Parties’ Post-Default Conduct Cannot Validate Void Default Orders
August 24, 2026 —
Joseph Kanefield, Ryan P. Hogan & Lilly M. Geiler - Snell & WilmerAfter filing a lawsuit, the first step is always serving process on the opposing party. While that preliminary step sounds basic enough, in McMahan v. Grasshopper, the Arizona Supreme Court recently provided a helpful refresher on the nuances of the service requirement and its importance in litigation for plaintiffs and defendants alike.1
Background
McMahan arose from a hit-and-run where a tractor-trailer collided with safety barricades and injured a construction worker. The construction worker sued the tractor-trailer company, and he attempted to serve the company by leaving a copy of the complaint with the assistant to the company’s statutory agent who forwarded the complaint to the company. The assistant, however, was not authorized to accept service on the company’s behalf. Before the company appeared in the action, the construction worker successfully obtained an entry of default.
Reprinted courtesy of
Joseph Kanefield, Snell & Wilmer,
Ryan P. Hogan, Snell & Wilmer and
Lilly M. Geiler, Snell & Wilmer
Mr. Kanefield may be contacted at jkanefield@swlaw.com
Mr. Hogan may be contacted at rhogan@swlaw.com
Ms. Geiler may be contacted at lgeiler@swlaw.com
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2026 Colorado Super Lawyers Recognizes 11 Snell & Wilmer Attorneys
May 05, 2026 —
Snell & WilmerDENVER – Snell & Wilmer is pleased to announce that eleven attorneys in its Denver office have been selected for inclusion in the 2026 Colorado Super Lawyers publication. Of those eleven, four were recognized as Rising Stars.
Super Lawyers is a listing of lawyers from more than 70 practice areas who have attained a high degree of peer recognition and professional achievement. The selection process is multi-phased and includes independent research, peer nominations, and peer evaluations. The final published list represents no more than 5 percent of the lawyers in the state.
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Snell & Wilmer
Landlord Determined to Not Qualify as Additional Insured
September 08, 2026 —
Tred R. Eyerly - Insurance Law HawaiiIn a dispute between two insurers, the Second Circuit affirmed the district court’s determination that the landlord was not an additional insured under the tenant’s policy. Peleus Ins. Co. v. Am. European Ins. Co., 2026 U.S. App. LEXIS 17981 June 22, 2026).
Blossom Miller sued 57th Avenue and 21st Century in state court alleging that she was injured when she tripped on the sidewalk in front of the leased premises (the “Miller Action”). The premises was leased by 57th Avenue to 21st Century.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Risk Reset: Concerns Top of Mind for Top Construction Law Firms
September 28, 2026 —
David McMillin - Construction ExecutiveIn the summer of 2025, contractors were consumed by one major issue: tariffs. Owners, builders and suppliers were trying to understand how shifting trade policy would affect bid pricing and ongoing projects. While those concerns have eased after a Supreme Court ruling, some of the industry’s top legal experts—all of whom practice at some of CE’s Top 50 Construction Law Firms—point to a different set of worries that are keeping their clients up at night and keeping their offices busy.
Inflation is not fading away, creating continued price challenges. Artificial intelligence is moving at a breakneck pace, offering potential time-saving benefits paired with major liability concerns. The federal government continues to make surprising policy changes, and contractors remain focused on managing financial risk across increasingly complex projects.
Reprinted courtesy of
David McMillin, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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The ROI of Estimating Accuracy in Preconstruction
September 15, 2026 —
Aaron Kivett - Construction ExecutivePrecision is the foundation of profitability in construction. Even minor quantity or pricing mistakes can swing bids anywhere from 5-15%, leading to project delays, unprofitable jobs or margin erosion through change orders. And worse, these losses can damage client trust and jeopardize long-term relationships that drive repeat business and future bids. Consistently
estimating accurately builds confidence, speeds up bidding and positions your company to win more profitable projects.
Estimating accuracy is where profit is either protected or lost. In construction, you make your biggest financial decisions before a project ever starts. Once a bid is won, most of the project’s cost structure is locked in. If the estimate is wrong, no amount of execution can fully fix those mistakes. That makes estimating accuracy a business issue, not just an operations issue.
Reprinted courtesy of
Aaron Kivett, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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