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Unformatted text preview: contractual relationships with the owner:
1. Agent relationship (A): a contract to perform services (e.g.
design) AND possibly represent the owner in front of other
parties (e.g. supervision over the contractor)
2. Non-agent relationship ($): regular legally binding contract to
perform a service. Traditional Projects DB Projects 35 DBB/DB/CM Illustration
• Various forms of CM contracts (CM At-risk) 36 Subcontracts
• “Pay-if-paid” clauses appear in some subcontracts / subsubcontracts:
– The subcontractor is paid only if the general contractor is paid
– To shift the risk of project owner non-payment from the prime
contractor to the _______________.
– Quite popular
– E.g. “The total price paid to [subcontractor] shall be [contract
price], no part of which shall be paid until 5 days after payment
is received from owner.”
– E.g. “… the Contractor shall pay the Subcontractor each
progress payment and final payment … within three working
days after he receives payment from the Owner ...“
• “________________” clauses: the con...
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This document was uploaded on 01/28/2014.
- Fall '14