Pay-If-Paid Clauses: Freedom of Contract or Protecting the Subcontractor From Itself?
The Construction Lawyer
Winter 2011
William M. Hill and Mary-Beth McCormack
"When the unthinkable happens, and the owner becomes insolvent, both the subcontractor and the contractor are often left in a position where they have not been paid for approved work that they have performed. To protect themselves from this risk, contractors often place 'pay-if-paid' provisions in their subcontracts. And subcontractors agree to them."
In this article, "Pay-If-Paid Clauses: Freedom of Contract or Protecting the Subcontractor From Itself?" published in Volume 31, Number 1, Winter 2011 The Construction Lawyer, Mintz Levin attorneys William M. Hill and Mary-Beth McCormack describe the four main approaches jurisdictions are taking in interpreting these conditional payment provisions.
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