Pay-if-paid and Pay-when-paid Clauses in Construction Subcontracts

Construction involves management of many risks, including the risk that the owner will fail to compensate the contractor for its work. Contractors often attempt to spread this risk down the contracting chain to subcontractors by including pay-if-paid and pay-when-paid clauses in their subcontracts. Learn about these two types of clauses, their differences, and enforceability issues.

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