Chicago partner Margery Newman recently wrote an article for NSA Today magazine’s ninth issue titled “Pass-Through and Liquidating Agreements for the Construction Industry.” Margery discusses pass-through claims, pass-through agreements/liquidating agreements and the necessity for both.
Margery notes that pass through claims and agreements are an efficient and practical way to streamline the litigation process and resolve contractual disputes. She writes, “[w]ithout a liquidation agreement in place, the subcontractor would be obligated to bring its claims directly against the prime contractor, who in turn would have to sue the owner. This arrangement requires the involvement of additional parties, and as a result is expensive, time-consuming, and could erode potential recovery.”
NSA Today is the official publication of the National Subcontractors Alliance. The article first appeared on the Chicagoland Associated General Contractor’s Blog.