The Real Lemon in the Bunch: Understanding Pay-If-Paid Clauses in Construction Contracts
Best Practices Construction Law
NOVEMBER 21, 2019
In a payment dispute between the subcontractor and contractor, the contractor argued that the “pay if paid” clause provided an absolute defense to payment. Since the contractor had not been paid for its work, it refused to pay the subcontractor’s work. Courts across the country vary in their treatment of these issues. However, in Thomas J.
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