Construction Contracts: "Paid if Paid"-"Paid when Paid"


Contingent payment clauses are often included in construction contracts to enable one party to avoid making payments to their subcontractors while waiting on payments from an upstream party with the payment obligation. Contingent payment clauses often have “paid if paid” and “paid when paid” language.

With current legislation and case law comes an avenue of collection for subcontractors and suppliers where, in the past, those same subcontractors and suppliers just “wrote it off” if they signed a contract with one of these clauses and didn’t get paid.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Kelly M. Davis, Kelly M. Davis & Associates, LLC | Attorney Advertising

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