Construction Law Blog

The Maryland Construction Trust Statute (“Trust Statute”) provides another avenue in which subcontractors can obtain payment for work performed and materials furnished. Essentially, the Trust Statute requires general contractors to remit payment to subcontractors if the general contractor has been paid for the subcontractor’s work by the owner. If found in violation of the Trust…

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Mechanic’s liens in Maryland play an important role in ensuring contractors and subcontractors receive payment for work performed and materials provided on construction projects.  Mechanic’s liens, however, cannot be applied to all construction jobs and the application of mechanic’s liens in Maryland requires compliance with numerous statutory provisions.  The following is a list of can…

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General contractors seeking to shift the risk of non-payment to subcontractors by making payment to subcontractors contingent on payment by the owner include “pay if paid” clauses in the subcontract; however, in Maryland, a subcontractor may not bear the entire risk if the clause does not contain specific language, as required by Maryland Courts. Maryland…

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By: Matt Hjortsberg In a case arising out of the to construction of the Gaylord Hotel at National Harbor, the Court of Appeals for the Fourth Circuit has ruled that the general contractor forfeited its right to collect literally tens of millions of dollars from its insurance carrier.

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Retainage is required on almost all construction projects.  Retainage in a construction contract allows the developer to withhold a portion of each progress payment to the contractor until the project is complete.  Retainage is basically a form of insurance to the developer because there is a strong financial incentive for the contractor to complete the…

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In this new installment in our continuing discussion of mechanic’s liens in construction, we update the basics for proper exercise of this most vital right and remedy of contractors and subcontractors. Contractors and subcontractors must understand the basics regarding mechanic’s lien in Maryland in order to ensure they do not unintentionally waive any rights. These…

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The Maryland Mechanic’s Lien law allows contractors, subcontractors and suppliers to bring claims directly against an owner of residential or commercial property, provided that the claimant meets certain procedural and substantive qualifications.  Additionally, Maryland contract law does not allow a contractor or subcontractor to waive their right to file a mechanic’s lien, even if the…

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Mechanic’s liens in Maryland allow a general or subcontractor to obtain a lien on the building on which they performed work or supplied materials.  In commercial real property, however, some confusion may arise as to the definition of “owner” as outlined in the Maryland Mechanic’s Lien Statute.

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