Question
1. Contractor performs a construction project for owner. Some of the work on the project was performed by a subcontractor. The subcontractor agreement includes the
1. Contractor performs a construction project for owner. Some of the work on the project was performed by a subcontractor. The subcontractor agreement includes the following provision:
"Final payment, including all retention, becomes due and payable within 30 days after Architect certification of final payment. At all times the Subcontractor shall be paid to the extent that the Contractor has been paid on the Subcontractor's account"
a. Owner defaults, files bankruptcy, and does not pay contractor for the project. Does the contractor have to pay Subcontractor? why or why not?
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