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Can we pay a subcontractor (installer) after receipt of payment from the general contractor?

8 months ago

We are asked to send lien waivers from our installers before we get paid for a project. Is there a way we can use a pay when paid type of waiver that will alow us to pay them out of the project instead of out of “our” accounts.

We sometimes use certified payroll forms for government projects and on those the installers state that they “are a self employed sole proprietor. Payment will be paid in a lulmp sum at the conclusion of the job. The job was billed at the rate equal to prevailing wage and total benefit package.”

Could this form be used as a sort of lien waiver?

Attorney & Shareholder Hurtado Zimmerman SC
1 review

Generally, Wisconsin allows pay when paid clauses to be used with subcontractors.  As a result, you would be able to structure your relationship with subcontractors/installers to provide for pay when paid.  However, how you address that on this specific project will require additional review of your relationships and your project contract.  A brief review by an attorney would be helpful to provide forms to properly structure the payment terms and address lien waiver requirements.

 

Brian Zimmerman

Hurtado Zimmerman SC

1011 N Mayfair Road, Suite 204

414-727-6250

bzimmerman@hzattys.com

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