Construction
May 5, 2021
Ruling examines enforceability of ‘pay-when-paid’ provisions
Most construction attorneys know that “pay-when-paid” contractual provisions are enforceable but that “pay-if-paid” contractual provisions are not.
Garret D. Murai
Partner
Nomos LLP
Garret is the editor of the California Construction Law Blog at www.calconstructionlawblog.com.
Most construction attorneys know that "pay-when-paid" contractual provisions are enforceable but that "pay-if-paid" contractual provisions are not.
A pay-if-paid provision is one in which a higher-tier party agrees to pay a lower-tier party "if" it is paid by a still-higher-tier party. Most commonly they are found in subcontracts between general contractors and subcontractors and provide that the general co...
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