Closes in Las Vegas with More Advice for Glaziers
Richard Kalson and David White of Thorp Reed & Armstrong LLP talked
about a "new hot clause" showing up in subcontracts during their
presentation on "Construction Law Developments in 2007" during the
Glass Association of North America's (GANA) Building Envelope Contractors
(BEC) conference, which closed yesterday at the Rio in Las Vegas.
The pay-when-paid clause has a big difference from the pay-if-paid
clause, the law duo noted during their talk.
White explained that a pay-if-paid clause more or less says that
a subcontractor will only be paid if a general contractor is paid
by the owner, implying that if the general contractor is not paid
the sub suffers that fate as well. "Don't agree to this," White
"It's important because once that risk of payment shifts from the
general contractor being paid by the owner to you, the subcontractor,
then you are completely at the mercy of the payment by owner and
you don't ever want to get into that situation," he said. "That
should always be a deal breaker."
As White noted, "Some states have actually enacted legislation
that these clauses are unenforceable." (CLICK
HERE to read about a recent court decision in Georgia on the
While the "pay-if-paid clause can result in your never ever ever
being paid by the general," White explained, the pay-when-paid clause
"sets a reasonable amount of time, say a year," after which point
the court will usually make a decision that the subcontractor must
In response to a question from the audience, White agreed that
there can be an advantage to striking a pay-when-paid contract clause
so that it simply says the general contractor shall pay the
"To the extent that you can get rid of that, try that, absolutely,"
The law discussion spanned two days, but it wasn't the sole discussion
during yesterday's conference. The audience also heard a talk on
energy modeling from Patrick Muessig of Azon USA. Muessig introduced
his audience to some of the tools available for this topic, from
the National Fenestration Rating Council's (NFRC) Computer Modeling
Approach (CMA) and AAMA 507 (CLICK
HERE for related story), as well as an overview of some of the
federal legislation pointing toward requirements for energy-efficient
buildings, including the recently passed Energy Independence and
Security Act of 2007 (for more information on this new law, look
for the March 2008 issue of USGlass).
Bruce Werner of Curtain Wall Design and Consulting Inc. and Peter
Poirier of Tremco Inc. formed a panel about four-sided structural
silicone glazing. As Werner pointed out, the talk in Las Vegas was
apropos as the City Center project on the Strip is the largest structural
silicone glazed (SSG) construction project in the world. Since the
first SSG building was constructed in 1971, it has become "a mature
technology," Werner said.
HERE to read about yesterday's keynote speaker Mike Eruzione.
For more about these seminars, look for the April 2008 USGlass
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