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Construction contracts that contain ?EUR??,,????'?????< This clause makes payment by the owner to the general contractor, or from the general contractor to subcontractors, or to suppliers, conditioned upon certain events before the obligation to pay. Essentially, it shifts the risk of receiving payment to the recipient, who must wait for a particular happening to trigger payment flowing downstream in the construction industry ?EUR??,,????'?????< State Legislation Many states have either legislated against such clauses, or the courts have either dampened the effectiveness or have held such provisions void and unenforceable as against public policy. The Ohio Supreme Court declined to review the opinion of the Court of Appeals in Power & Pollution Services, Inc. v. Suburban Power Piping Corp. (1991). ?EUR??,,????'?????< In Dyer, the contractor relied on a ?EUR??,,????'?????< The court reasoned as follows: ?EUR??,,????'?????< Applying the reasoning of the court in Dyer to the present case, we find the provision in dispute here does not set a condition precedent to the general contractor?EUR??,,????'?????< Contractor Beware Read the contract carefully before signing or accepting the terms. Nothing is cast in bronze except baby shoes; negotiate terms to eliminate unfair terms or practices. Do not waive payment when due; insist also upon payment of interest at the legal rate for late payments. File your Notice of Furnishing immediately upon beginning work, and record your Mechanic?EUR??,,????'?????< When all else fails, after proper notice to the owner by Certified Mail, stop all work and pull off the job. Learn more about J. Norman Stark at www.jnormanstark.com
This clause makes payment by the owner to the general contractor, or from the general contractor to subcontractors, or to suppliers, conditioned upon certain events before the obligation to pay. Essentially, it shifts the risk of receiving payment to the recipient, who must wait for a particular happening to trigger payment flowing downstream in the construction industry ?EUR??,,????'?????<
Many states have either legislated against such clauses, or the courts have either dampened the effectiveness or have held such provisions void and unenforceable as against public policy.
The Ohio Supreme Court declined to review the opinion of the Court of Appeals in Power & Pollution Services, Inc. v. Suburban Power Piping Corp. (1991).
?EUR??,,????'?????<
In Dyer, the contractor relied on a ?EUR??,,????'?????<
The court reasoned as follows: ?EUR??,,????'?????<
Applying the reasoning of the court in Dyer to the present case, we find the provision in dispute here does not set a condition precedent to the general contractor?EUR??,,????'?????<
Read the contract carefully before signing or accepting the terms.
Nothing is cast in bronze except baby shoes; negotiate terms to eliminate unfair terms or practices.
Do not waive payment when due; insist also upon payment of interest at the legal rate for late payments.
File your Notice of Furnishing immediately upon beginning work, and record your Mechanic?EUR??,,????'?????<
When all else fails, after proper notice to the owner by Certified Mail, stop all work and pull off the job.
Learn more about J. Norman Stark at www.jnormanstark.com
Francisco Uviña, University of New Mexico
Hardscape Oasis in Litchfield Park
Ash Nochian, Ph.D. Landscape Architect
November 12th, 2025
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