Article Date: 07/01/2016


Subcontract Clause Was Enforceable “Pay-if-Paid”


A clause making prime contractor payment to a subcontractor contingent on the prime’s receipt of payment from the project owner was unambiguous. It was an enforceable “pay-if-paid” clause, not merely a “pay-when-paid” clause that allowed a reasonable time to make payment.

 

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