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How long can a general contractor put off payment to sub (me) when there is a "pay when paid" clause in my contract?

Arizona

I'm a plumbing subcontractor and the general I am working for pushes the "pay when paid" clause that is in our contract. Isn't there any sort of limit to this? What if I think the contractor is being dishonest about not receiving payment? Isn't there some way for me to verify this? (without violating the "do not contact property owner directly" clause also in my contract?

1 reply

May 18, 2022

Hard to answer this question without looking at the contract itself, particularly the "do not contact property only directly" provision. Yes there are limits to the pay when paid clause. Typically, if the reason for the lack of payment is something the general did, then the general cannot rely on the pay when paid clause to avoid paying the sub. That is as a general matter. How and whether that rule applies really depends on the details. Please feel free to contact me to discuss further.

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