Written by attorney Alexander Edward Barthet

Ways to Get Paid Even if You Have a Pay-when-Paid Provision

A pay-when-paid (or pay-if-paid) contractual provision exists in almost every construction contract you are asked to sign these days. A pay-when-paid provision is a contract clause that shifts the risk of nonpayment from one party to another.

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Be aware that even if you have a pay-when-paid provision in your contract, your lien rights may have survived and still be intact. And while you may not be able to overcome a pay-when-paid provision in your contract, it’s important to at least understand the associated risks.

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