UNDERSTANDING PAY-IF-PAID VS. PAY-WHEN-PAID CLAUSES IN CONSTRUCTION AGREEMENTS

There are countless ways for a construction project to go awry. The first claims that come to mind are those based on delays or defective workmanship, but perhaps even more common are the potential claims which arise when a general contractor does not receive payment from the owner, but remains potentially liable to its subcontractors for work performed. Like most construction disputes, the answer to the question of whether or when a general contractor is liable for payment to its subcontractors starts (and often ends) with the language of the contract.

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