A 'pay-if-paid' clause in a subcontract attempts to make the general contractor's receipt of payment from the owner a:

a.Condition precedent to the general's obligation to pay the subcontractor
b.Requirement that the sub perform without a contract
c.Guarantee that the sub is paid within 24 hours
d.Waiver of the sub's mechanics lien only

Giải thích

A pay-if-paid clause seeks to make the owner's payment to the general contractor a condition precedent to the general's duty to pay the subcontractor, so that if the owner never pays, the general arguably owes the sub nothing. Such clauses are strictly construed and, in some jurisdictions and circumstances, limited by law or public policy. It is not a 24-hour payment guarantee, is not merely a lien waiver, and does not eliminate the need for a subcontract.

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Sen Lin, Người sáng lập PrepPass · Đối chiếu với California CSLB Contractor License Law & Business Exam · Quy trình kiểm tra
Người kiểm duyệt Abraham Chen Licensed California General Contractor (CSLB License #1101856 kiểm tra)
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