Pay-if-Paid vs. Pay-when-Paid in Construction Contracts | Practical Law

Pay-if-Paid vs. Pay-when-Paid in Construction Contracts | Practical Law

A Practice Note addressing who bears the risk of an owner's nonpayment in a contractor-subcontractor construction agreement. Whether a prime contractor remains obligated to pay its subcontractors even if the owner defaults may be governed by statute, case law, or contract. This Practice Note discusses how to establish who bears that risk and whether the risk can be shifted by contract.

Pay-if-Paid vs. Pay-when-Paid in Construction Contracts

Practical Law Practice Note 9-604-7025 (Approx. 12 pages)

Pay-if-Paid vs. Pay-when-Paid in Construction Contracts

by Michael S. Zicherman, Esq., Peckar & Abramson, P.C. with Practical Law Real Estate
MaintainedUSA (National/Federal)
A Practice Note addressing who bears the risk of an owner's nonpayment in a contractor-subcontractor construction agreement. Whether a prime contractor remains obligated to pay its subcontractors even if the owner defaults may be governed by statute, case law, or contract. This Practice Note discusses how to establish who bears that risk and whether the risk can be shifted by contract.