The pay-when-paid clause can be confusing for all parties involved in a construction project, Alex Barthet writes. If the provision is meant to establish a precondition to payment, then it "must be free of any ambiguity and must establish by its express terms that payment by the owner is an absolute condition precedent to any requirement on the part of one party to pay the other," he writes.
Commentary: Ways to clarify the pay-when-paid clause
Sign up for AGC Risk Management SmartBrief
Construction risk management news
Get the intelligence you need: news and information that is changing your industry today, hand-curated by our professional editors from thousands of sources and delivered straight to your inbox.