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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link="#0563C1" vlink="#954F72"><div class=WordSection1><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman","serif";color:#1F497D'>I’ve seen this frequently as well and don’t know of any changes to the law—it appears to be an attempt by GCs to confuse the issue for the courts. I always try to get it out via an addendum or modification to the subcontract, but most of the big GCs will not agree to modify this language.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman","serif";color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman","serif";color:#1F497D'>Chuck<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman","serif";color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-family:"Times New Roman","serif";color:navy'>Charles B. Hernicz, Esq.<br></span><b><span style='font-size:7.0pt;font-family:"Times New Roman","serif";color:#1F497D'>Board Certified in Construction Law by The Florida Bar <br></span></b><span style='font-family:"Lucida Calligraphy";color:blue'>Hernicz Legal Services, P.L.<br></span><span style='font-size:10.0pt;font-family:"Times New Roman","serif";color:navy'>15854 Bent Creek Road <br>Wellington, FL 33414 <br>Telephone: (561) 753-7511 <br>Facsimile: (561) 753-7082 <br></span><span style='font-size:10.0pt;font-family:"Times New Roman","serif";color:blue'><a href="Chernicz@HerniczLegal.com"><span style='color:blue'>Chernicz@HerniczLegal.com</span></a></span><span style='font-family:"Times New Roman","serif";color:#1F497D'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman","serif";color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman","serif";color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman","serif";color:#1F497D'><o:p> </o:p></span></p><div><div style='border:none;border-top:solid #B5C4DF 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'>From:</span></b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'> clc-discussion-bounces@lists.flabarrpptl.org [mailto:clc-discussion-bounces@lists.flabarrpptl.org] <b>On Behalf Of </b>Robert Worman<br><b>Sent:</b> Monday, July 06, 2015 5:56 PM<br><b>To:</b> clc-discussion@lists.flabarrpptl.org<br><b>Subject:</b> [CLC-Discussion] Paid If Paid Incorporated By Reference From Subcontract To 713.23 Statutory Payment Bond<o:p></o:p></span></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>I have recently reviewed several large project subcontracts for clients where the contractor is incorporating by reference in the subcontract the risk shifting “paid if paid” condition precedent to also be a condition precedent in the contractor’s Payment Bond.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Am I missing a case out there that allows a 713.23 bond to enjoy this condition precedent and still allow for the property’s exemption from construction liens? Isn’t that the whole reason behind 713.245 payment bonds? <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Am I wrong to think that if the contractor tries to make its 713.23 bond conditioned upon payment by the owner, and it is not otherwise designated as a Conditional Payment Bond with 713.245 referenced in the bond, then either (a) the condition precedent would be void, such that the property would be exempt from construction liens, or (b) the bond would be a common law bond, no lien exemption would be enforced, and the owner’s interest in the property would be subject to construction liens?<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Anyone’s thoughts on this would be appreciated and should be sent directly to me unless you feel it is an issue worthy of all hearing your comments.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span style='color:black'>Regards,<o:p></o:p></span></p><p class=MsoNormal><span style='color:black'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:black'>Robert B. Worman<o:p></o:p></span></p><p class=MsoNormal><span style='color:black'>Worman & Sheffler, P.A.<o:p></o:p></span></p><p class=MsoNormal><span style='color:black'>2707 West Fairbanks Avenue<o:p></o:p></span></p><p class=MsoNormal><span style='color:black'>Suite 200<o:p></o:p></span></p><p class=MsoNormal><span style='color:black'>Winter Park, FL 32789<o:p></o:p></span></p><p class=MsoNormal><span style='color:black'>407 843-5353<o:p></o:p></span></p><p class=MsoNormal><span style='color:black'><a href="mailto:rworman@wormanlaw.com"><span style='color:black'>rworman@wormanlaw.com</span></a><o:p></o:p></span></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:7.5pt;font-family:"Arial","sans-serif";color:black'>NOTICE: </span><span style='font-size:12.0pt;font-family:"Times New Roman","serif";color:black'><o:p></o:p></span></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:7.5pt;font-family:"Arial","sans-serif";color:black'>THIS E-MAIL MESSAGE AND ANY ATTACHMENT TO THIS E-MAIL MESSAGE CONTAINS CONFIDENTIAL INFORMATION THAT MAY BE LEGALLY PRIVILEGED. 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