“Pay-If-Paid Clause” Enforced as Condition Precedent to Subcontractor Right to Payment
ConstructionRisk.com Report Vol. #14, Issue #2
See article in the following topic indices:
Pay-If-Paid,pay-when-paid,Payment Disputes,Quantum Meruit
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A “pay-if-paid” clause was enforceable to deprive a subcontractor (Sub) to sue the general contractor (GC) for withheld retainage where the project owner, a condominium developer, failed to pay the balance it owed to the general contractor which would have included payment for the sub’s retainage. The Alabama Supreme court in Lemoine Company v. HLH [...]
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