They are a big problem for all subcontractors and suppliers – those pay-when-paid provisions stating that payment won’t be due until and unless it is first paid by the owner. This shifting of the risk of non-payment from a general contractor to its subs and material suppliers has found its way into most every construction contract you see today. Can you do anything to overcome these clauses?
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Alexander Barthet is a board certified construction attorney in Florida and holds a B.S. in mechanical engineering. He manages The Barthet Firm, a ten lawyer construction law firm in Miami, and maintains a construction law blog at www.TheLienZone.com. He can be reached at 305-347-5295 or alex@barthet.com.
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