The Real Lemon in the Bunch: Understanding Pay-If-Paid Clauses in Construction Contracts
Best Practices Construction Law
NOVEMBER 21, 2019
Contractors have a means of shifting the risk of non-payment by the owner to its subcontractor by including a certain payment provisions in the subcontract agreement. In a payment dispute between the subcontractor and contractor, the contractor argued that the “pay if paid” clause provided an absolute defense to payment.
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