Pay-if-Paid Clauses in Construction Subcontracts | Practical Law

Pay-if-Paid Clauses in Construction Subcontracts | Practical Law

A Standard Clause providing clear and unequivocal language confirming the intent to shift the risk of nonpayment to a subcontractor or other lower-tier contractor on a construction project for use in states where pay-if-paid clauses are not prohibited by statute or case law. This jurisdictionally neutral Standard Clause contains integrated notes with important explanations and drafting tips to understand how a contractor can protect itself from an owner’s nonpayment.

Pay-if-Paid Clauses in Construction Subcontracts

Practical Law Standard Clauses 9-614-1985 (Approx. 7 pages)

Pay-if-Paid Clauses in Construction Subcontracts

by Michael S. Zicherman, Esq., Peckar & Abramson, P.C. with Practical Law Real Estate
MaintainedUSA (National/Federal)
A Standard Clause providing clear and unequivocal language confirming the intent to shift the risk of nonpayment to a subcontractor or other lower-tier contractor on a construction project for use in states where pay-if-paid clauses are not prohibited by statute or case law. This jurisdictionally neutral Standard Clause contains integrated notes with important explanations and drafting tips to understand how a contractor can protect itself from an owner’s nonpayment.