Question 1

What is a pay-if-paid clause in construction contracts?

Accepted Answer

A pay-if-paid clause makes the general contractor's obligation to pay the subcontractor conditional on receiving payment from the owner. If the owner doesn't pay, the subcontractor may have no legal right to collect. Pay-if-paid is void in California, New York, North Carolina, and several other states. SubShield automatically detects these clauses and tells you if they're enforceable in your state.

Question 2

What is broad indemnification in construction contracts?

Accepted Answer

Broad form (Type I) indemnification requires the subcontractor to indemnify the general contractor even for the GC's own negligence. This creates unlimited liability exposure. Over 40 states have anti-indemnity statutes that void these clauses. SubShield identifies them and cites the specific statute that voids them in your state.

Question 3

How does SubShield analyze construction contracts?

Accepted Answer

Upload your subcontract (PDF, Word, or paste text) and SubShield's AI analyzes it in about 60 seconds. You get a risk score (1-10), identification of 50+ risky clause types, negotiation language to propose to your GC, and state-specific legal information.

Question 4

Is SubShield a substitute for a construction attorney?

Accepted Answer

No. SubShield is an AI-powered educational tool that helps subcontractors understand their contracts better. For high-value contracts ($500K+) or complex disputes, consult a licensed construction attorney. SubShield costs $47 per analysis; attorney review costs $300-500+. Use SubShield for initial screening, attorney for final review.

Question 5

What states does SubShield cover?

Accepted Answer

SubShield provides analysis for all 50 US states with specific knowledge of state lien laws, anti-indemnity statutes, prompt payment act requirements, retainage caps, and pay-if-paid enforceability which varies significantly by state.

Question 6

How much does SubShield cost?

Accepted Answer

SubShield offers a free trial with one full analysis per month. Single reports cost $47. Pro Monthly is $97/month for unlimited analyses. Pro Annual is $797/year for unlimited analyses. All paid plans include a 60-day money-back guarantee.

Question 7

What is a no-damage-for-delay clause?

Accepted Answer

A no-damage-for-delay clause prevents the subcontractor from recovering monetary damages when the project is delayed, even if the delay was caused by the GC. The only remedy is a time extension, not compensation for increased costs. These clauses can cost subcontractors $23,000+ on average. SubShield detects these clauses automatically.

Question 8

How is SubShield different from using ChatGPT to review contracts?

Accepted Answer

SubShield is purpose-built for construction subcontracts with 50+ clause type detection specific to construction, state-specific legal information for all 50 states, industry benchmarks (AIA, ConsensusDocs standards), negotiation language templates, and a GC reputation database. General AI tools lack this specialized construction knowledge.

State	Pay-If-Paid	Anti-Indemnity	Retainage Cap
Alabama	Enforceable	intermediate	5%
Alaska	Enforceable	broad	No cap
Arizona	Enforceable	broad	10%
Arkansas	Enforceable	broad	10%
California	VOID	broad	5%
Colorado	LIMITED	broad	5%
Connecticut	Enforceable	broad	5%
Delaware	Enforceable	broad	No cap
Florida	Enforceable	intermediate	5%
Georgia	Enforceable	broad	10%
Hawaii	Enforceable	broad	5%
Idaho	Enforceable	broad	5%
Illinois	Enforceable	broad	10%
Indiana	Enforceable	broad	10%
Iowa	Enforceable	broad	5%
Kansas	Enforceable	broad	No cap
Kentucky	Enforceable	broad	10%
Louisiana	Enforceable	broad	5%
Maine	Enforceable	intermediate	5%
Maryland	Enforceable	broad	5%
Massachusetts	Enforceable	broad	5%
Michigan	Enforceable	broad	10%
Minnesota	Enforceable	broad	5%
Mississippi	Enforceable	broad	5%
Missouri	Enforceable	broad	5%
Montana	Enforceable	broad	No cap
Nebraska	Enforceable	broad	10%
Nevada	VOID	broad	5%
New Hampshire	Enforceable	broad	5%
New Jersey	Enforceable	broad	2%
New Mexico	Enforceable	broad	5%
New York	VOID	broad	5%
North Carolina	VOID	broad	5%
North Dakota	Enforceable	broad	No cap
Ohio	Enforceable	broad	10%
Oklahoma	Enforceable	broad	5%
Oregon	Enforceable	broad	5%
Pennsylvania	Enforceable	intermediate	10%
Rhode Island	Enforceable	broad	5%
South Carolina	VOID	intermediate	3.5%
South Dakota	Enforceable	broad	No cap
Tennessee	Enforceable	broad	5%
Texas	Enforceable	broad	5%
Utah	Enforceable	broad	5%
Vermont	Enforceable	None	No cap
Virginia	Enforceable	broad	5%
Washington	LIMITED	broad	5%
West Virginia	Enforceable	broad	10%
Wisconsin	VOID	intermediate	No cap
Wyoming	Enforceable	broad	No cap

Construction Contract Law by State

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