Welcome to your daily briefing on construction developments in Delaware. Today we're covering 5 key stories including updates on germany construction headlines, background & context. Let's dive in.
2 stories
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3 stories
"Pay-when-paid" sets a timing condition only — the GC must still pay even if the owner never does. "Pay-if-paid" creates a true condition precedent — no owner payment, no GC payment to subs. Many states will not enforce pay-if-paid clauses without unmistakably clear language; ambiguity defaults to pay-when-paid.
The risk allocation between subcontractors and GCs hinges on this one phrase. Subs who sign pay-if-paid contracts effectively underwrite owner credit risk on top of project risk.
"Substantial completion" is achieved when the owner can occupy the project for its intended use — not when a punch list is finished or a percentage is hit. The status starts warranty clocks, transfers risk of loss, and triggers retention release in most contracts. Disputes over whether SC has been achieved are common at month-end.
Premature certification of substantial completion commits the contractor to warranty coverage on incomplete work; delayed certification gives the owner leverage to extend retention. The legal definition controls, not the status meeting.
Federal Davis-Bacon applies to projects with federal funding above a threshold; state "little Davis-Bacon" laws apply to state-funded projects with their own thresholds. The trap: rules apply to the work, not the contract — a privately funded portion of a project with any covered funding is subject to coverage on the whole.
Wage-rate violations carry back-pay liability, debarment from future public bidding, and personal liability for officers in many states. The audits look back years.
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