In an article published in the February 2020 issue of Contactor Magazine, Kelly Bundy and Liz Burneson offered up tips for subcontractors to get paid despite a contractor’s desire to use pay-if-paid provisions in their agreements. Today, many contractors employ pay-if-paid provisions in their subcontracts, which generally provides that a contractor’s obligation to pay the subcontractor is contingent upon the contractor’s receipt of payment from the owner. Under this provision, if the owner never pays the contractor, then the contractor has no obligation to pay the subcontractor, presenting difficulties for subcontractors to be paid in a timely fashion.
The full article can be found on page 34 here.
Luis F. Ruiz