Tag Archives: pay-when-paid

Miller Act Payment Bond Surety Cannot Raise Pay-If-Paid / Pay-When-Paid Defense

Most prime contractors include pay-if-paid (or pay-when-paid) language in their subcontract as a means to shift the risk of the owner’s nonpayment to the subcontractor. However, on federal construction projects, the prime contractor furnishes the government with a Miller Act … Continue reading

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Pay-when-Paid (Pay-if-Paid) is Not a Defense to Payment Bond Claims

Pay-when-paid (or pay-if-paid) contractual provisions are common contractual provisions in subcontracts. These provisions shift the risk of an owner’s non-payment from a general contractor to the subcontractor. This means that the owner’s payment to the general contractor is a condition precedent to … Continue reading

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