Tag Archives: payment

Pay When Paid Clauses

Pay when paid clauses are highly contentious provisions in the construction industry that all sub-contractors need to be aware of.  In the normal course, a contractor must continue to pay a sub-contractor whether or not the contractor has been paid.  A pay when paid clause (PWP clause) will alter the normal course and permit the contractor to withhold paying a sub-contractor until the contractor is paid by the party above it in the construction pyramid.