March 8, 2004

RELEASES MUST MAKE CLEAR THE MONIES IT APPLIES TO

By Jayne Czik, Esq.
Contributing Editor

When drafting and signing releases, general contractors and subcontractors must make certain that they are not inadvertently releasing or keeping open claims. Typically, when a general contractor makes a progress payment to a subcontractor it requires the subcontractor to sign a partial release in which it gives up its right to make a claim against the general contractor based on the work it did during the progress period. The general contractor’s goal is to protect itself against surprise claims later for the work the subcontractor performed during that period.

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