The “pay-if-paid” clause – Know what you’re dealing with
$225.00
Description
Abstract: In recent years, increasing numbers of owner bankruptcies and insolvencies have brought pay-if-paid (PIP) clauses into the spotlight. These clauses — which shift the risk of owner nonpayment from general contractors to subcontractors — are controversial. But they’re common in construction contracts, so it’s important to understand their impact. This article discusses the enforceability of PIP clauses and their impact on surety bonds. A sidebar explains the distinction between a PIP clause and a pay-when-paid (PWP) clause.
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