Pay When Paid: Part I

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One of the justifications often used by a prime contractor to avoid paying a subcontractor is a contingent payment or “pay when paid” clause contained in the subcontract.  This clause usually states that the prime contractor has no obligation or duty to pay the subcontractor until payment is received by the prime contractor from the owner.  Upon first glance, many subcontractors believe that this provision prevents them from obtaining payment.  However, in Florida, there are at least three ways to beat pay when paid clauses.



Trenton H. Cotney
Board Certified in Construction Law
Trent Cotney, P.A.
1207 N Franklin St, Ste 222
Tampa, FL 33602
(813) 579-3278

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