New York City Commercial Debt Collection Attorney Blog: ‘Pay When Paid,’ Really?

New York City Commercial Debt Collection Attorney Blog: 'Pay When Paid,' Really?You are a subcontractor and performed the work agreed upon between you and the contractor. A New York City commercial debt collection attorney agrees, now, it is time for you to be paid.

However, many construction contracts provide a ‘pay when paid’ clause. According to the ‘pay when paid’ contract, if the contractor does not get paid, neither do you.

 

Agreeing to a ‘pay when paid’ clause in your contract is common practice in the industry. Does that mean you must really wait to be paid?

The answer in New York is, NO. ‘Pay when paid’ clauses are un-enforceable. The risk of payment should not fall to the subcontractors. In other words, if you have performed services on a project, and the contractor is withholding payment, you can pursue them for the balance due.

For more information about the ‘pay when paid’ clause or to submit a claim, please contact this New York City commercial debt collection attorney.

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