When you get paid is very different from if you get paid.

“Pay when paid” simply shifts the timing of payment, and the contractor must still pay the subcontractor within a reasonable period of time, even if the contractor is not paid by the owner for the subcontractor’s work.

In contrast, “pay if paid” shifts the entitlement to payment and forces the subcontractor to assume the credit risk of non-payment by the owner to the contractor. If the contractor is not paid, neither is the subcontractor.

Top Ten Payment Myths

Avoid collection problems by avoiding these payment myths.

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Five Killer Contract Clauses You Might Have Missed

Some clauses will obviously kill a contract, but there are others that may be less obvious, but can be very damaging.

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Contingent Payment Clauses: “Pay-When-Paid” vs. “Pay-If-Paid”

While traditional “pay-when-paid” provisions are interpreted as an unconditional promise to pay, “pay-if-paid” clauses are increasingly putting subcontractors at risk.

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Contingent Payment in the 50 States

Learn what states ban “pay-if-paid” clauses and what the law is concerning contingent payment in that jurisdiction.

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