As
with all contract provisions, the course of conduct or actions between the
parties can result in the waiver of a contractual requirement. With regard to a contingent payment clause or
pay when paid provision, if the prime contractor previously paid the subcontractor
despite not being paid by the owner, then the subcontractor will have an
argument that the prime contractor waived the pay when paid provision. In other words, the course of conduct between
the parties on the project demonstrated that the prime contractor intended to
pay the subcontractor regardless of the validity of the pay when paid
provision.
Trenton H. Cotney
Board Certified in Construction Law
1207 N Franklin St, Ste 222
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