Over the last four years we’ve all had to deal with the funding crashes that followed the 2008 financial crisis. In those four years, many have also learned the difference between pay-if-paid clauses and pay-when-paid clauses. But what is the difference between the two, when should each one be used, and why should it matter […]
Category: construction contract clauses
Are Pay If Paid Clauses Enforceable?
An age old story in construction is as follows: the owner doesn’t pay the contractor, and a subcontractor, who has performed its work diligently and according to its contract, doesn’t get paid either. Most of these situations arise because the subcontract contains “pay when paid” or “pay-if-paid” clauses. These clauses shift the risk of nonpayment […]