{"id":1048,"date":"2012-03-26T20:43:00","date_gmt":"2012-03-26T20:43:00","guid":{"rendered":"https:\/\/www.lienitnow.com\/blog\/index.php\/2012\/03\/26\/pay-if-paid-v-pay-when-paid-clauses-which-is-which-and-who-cares\/"},"modified":"2012-03-26T20:43:00","modified_gmt":"2012-03-26T20:43:00","slug":"pay-if-paid-v-pay-when-paid-clauses","status":"publish","type":"post","link":"https:\/\/www.lienitnow.com\/blog\/2012\/03\/pay-if-paid-v-pay-when-paid-clauses.html","title":{"rendered":"Pay if Paid v. Pay When Paid Clauses &#8211; Which is Which and Who Cares?"},"content":{"rendered":"<div style=\"clear: both; text-align: center;\"><a href=\"http:\/\/img.ehowcdn.com\/article-new\/ehow\/images\/a08\/1n\/b6\/ask-payment-politely-800x800.jpg\" style=\"clear: right; float: right; margin-bottom: 1em; margin-left: 1em;\"><img decoding=\"async\" border=\"0\" src=\"http:\/\/img.ehowcdn.com\/article-new\/ehow\/images\/a08\/1n\/b6\/ask-payment-politely-800x800.jpg\" \/><\/a><\/div>\n<p><span style=\"font-family: Arial, Helvetica, sans-serif;\">Over the last four years we&#8217;ve all had to deal with the funding crashes that followed the 2008 financial crisis. &nbsp;In those four years, many have also learned the difference between pay-if-paid clauses and pay-when-paid clauses. But what is the difference between the two, when should each one be used, and why should it matter to you?<\/span><br \/><span style=\"font-family: Arial, Helvetica, sans-serif;\"><br \/><\/span><br \/><span style=\"font-family: Arial, Helvetica, sans-serif;\">If you&#8217;re a contractor, subcontractor, or sub-subcontractor, you should take the time to find out how and if a pay-when-paid and pay-if-paid clause will effect you. As a contractor, how you word your contract could mean financing a project for an insolvent owner that never pays you. As a subcontractor, if the owner goes out of business you may never get paid for work you do if the contractor never gets paid. &nbsp;In many states, all this depends on some simple wording.&nbsp;<\/span><br \/><span style=\"font-family: Arial, Helvetica, sans-serif;\"><br \/><\/span><br \/><span style=\"font-family: Arial, Helvetica, sans-serif;\">We&#8217;ll explain what a pay-if-paid and what a pay-when-paid clause is one at a time so you can compare the differences:<\/span><br \/><span style=\"font-family: Arial, Helvetica, sans-serif;\"><br \/><\/span><br \/><span style=\"font-family: Arial, Helvetica, sans-serif;\"><b>Pay When Paid Clauses<\/b><\/span><br \/><span style=\"font-family: Arial, Helvetica, sans-serif;\"><b><br \/><\/b><\/span><br \/><span style=\"font-family: Arial, Helvetica, sans-serif;\">The phrase &#8220;pay-when-paid&#8221; is deceiving: most people believe pay when paid means that if the contractor does not receive payment from the owner, then he has no obligation to pay his subcontractor. &nbsp;However, most courts have interpreted &#8220;pay-when-paid&#8221; as timing provisions. In New York, for instance, the court has defined pay-when-paid clauses as permitting a delay in payment for a reasonable period of time. &nbsp;In short, courts refuse to permit the risk of non-payment to be shifted to the subcontractor based on pay when paid provisions. &nbsp;According to an article&nbsp;<\/span><span style=\"font-family: Arial, Helvetica, sans-serif;\">titled &#8220;<a href=\"http:\/\/www.mintz.com\/media\/pnc\/3\/media.2513.pdf\">Pay-If-Paid Clauses: Freedom of Contract or Protecting the Subcontractor from Itself?<\/a>&#8220;,<\/span><span style=\"font-family: Arial, Helvetica, sans-serif;\">written by William M. Hill and Mary-Beth McCormack&nbsp;<\/span><span style=\"font-family: Arial, Helvetica, sans-serif;\">in the<\/span><span style=\"font-family: Arial, Helvetica, sans-serif;\">&nbsp;<\/span><span style=\"font-family: Arial, Helvetica, sans-serif;\"><i>Construction Lawyer,&nbsp;<\/i><\/span><span style=\"font-family: Arial, Helvetica, sans-serif;\">Winter 2011 edition, when interpreting pay-when-paid clauses,&nbsp;<\/span><span style=\"font-family: Arial, Helvetica, sans-serif;\">Courts usually point to the &#8220;harsh effects of &#8216;conditions precedent&#8217;, and a general policy of avoiding them if other reasonable readings of a contract is possible.&#8221;<\/span><br \/><span style=\"font-family: Arial, Helvetica, sans-serif;\"><br \/><\/span><\/p>\n<p><span style=\"font-family: Arial, Helvetica, sans-serif;\">Courts have not uniformly construed \u201cpay-when-paid\u201d clauses. One of the premiere cases &#8220;<\/span><span style=\"font-family: Arial, Helvetica, sans-serif;\">that squarely addresses the issue is <i><a href=\"http:\/\/www.leagle.com\/xmlResult.aspx?xmldoc=19841290589FSupp701_11180.xml&amp;docbase=CSLWAR1-1950-1985\">Seal Tite Corp v. Ehret, Inc.<\/a><\/i>, 589 F.Supp.&nbsp;<\/span><span style=\"font-family: Arial, Helvetica, sans-serif;\">701 (D.N.J. 1984). In <i>Seal Tite<\/i>, the court, following the reasoning expounded in the Sixth&nbsp;<\/span><span style=\"font-family: Arial, Helvetica, sans-serif;\">Circuit case, <i><a href=\"http:\/\/openjurist.org\/303\/f2d\/655\/thos-dyer-company-v-bishop-international-engineering-company\">Thos. J. Dyer Co. v. Bishop Int\u2019l Engineering Co.<\/a><\/i>, 303 F.2d 606 (6th Cir. 1962),&nbsp;<\/span><span style=\"font-family: Arial, Helvetica, sans-serif;\">construed a subcontract \u201cpay-when-paid\u201d provision as postponing payment for a reasonable&nbsp;<\/span><span style=\"font-family: Arial, Helvetica, sans-serif;\">period of time rather than a conditional promise to pay by the general contractor. The court&nbsp;<\/span><span style=\"font-family: Arial, Helvetica, sans-serif;\">explained that because the payment clause did not make reference to the possibility of the&nbsp;<\/span><span style=\"font-family: Arial, Helvetica, sans-serif;\">owner\u2019s insolvency, but did refer to the amount, a time and method of payment, the clause&nbsp;<\/span><span style=\"font-family: Arial, Helvetica, sans-serif;\">was merely a provision affording the general contractor a reasonable time to procure from&nbsp;<\/span><span style=\"font-family: Arial, Helvetica, sans-serif;\">the owner the funds necessary to pay the subcontractor. <i>Seal Tite<\/i>, 589 F.Supp. at 704&nbsp;<\/span><span style=\"font-family: Arial, Helvetica, sans-serif;\">(quotations omitted). Ultimately, the court\u2019s determination turned on whether there is any&nbsp;<\/span><span style=\"font-family: Arial, Helvetica, sans-serif;\">indication in the payment clause that the subcontractor would undertake any risk in the&nbsp;<\/span><span style=\"font-family: Arial, Helvetica, sans-serif;\">event the owner of the project would become insolvent. <u>Id<\/u>. Simply put, there must be&nbsp;<\/span><span style=\"font-family: Arial, Helvetica, sans-serif;\">express language clearly showing the intention of the parties to shift the risk. <u>Id<\/u>. The Dyer&nbsp;<\/span><span style=\"font-family: Arial, Helvetica, sans-serif;\">approach has been recognized as the leading decision in this area. <i><a href=\"http:\/\/www.blogger.com\/goog_1987516550\">Lafayette Steel Erectors,&nbsp;<\/a><\/i><\/span><span style=\"font-family: Arial, Helvetica, sans-serif;\"><i><a href=\"http:\/\/www.leagle.com\/xmlResult.aspx?xmldoc=199765371FSupp2d582_1592.xml&amp;docbase=CSLWAR2-1986-2006\">Inc. v. Roy Anderson Corp.<\/a><\/i>, 71 F. Supp. 2d 582, 587 (S.D. Miss. 1997) (&#8220;Dyer has been cited&nbsp;<\/span><span style=\"font-family: Arial, Helvetica, sans-serif;\">and relied upon repeatedly . . . .&#8221;); <i>Mrozik Constr., Inc. v. Lovering Associates., Inc.<\/i>, 461&nbsp;<\/span><span style=\"font-family: Arial, Helvetica, sans-serif;\">N.W.2d 49, 51 (Minn. Ct. App. 1990) (describing Dyer as &#8220;a leading case on which the&nbsp;<\/span><span style=\"font-family: Arial, Helvetica, sans-serif;\">Restatement [(Second) of Contracts] illustration was based&#8221;); <i><a href=\"http:\/\/www.blogger.com\/goog_1987516546\">Watson Constr. Co. v. Reppel&nbsp;<\/a><\/i><\/span><span style=\"font-family: Arial, Helvetica, sans-serif;\"><i><a href=\"http:\/\/az.findacase.com\/research\/wfrmDocViewer.aspx\/xq\/fac.19790612_0040273.AZ.htm\/qx\">Steel &amp; Supply Co.<\/a><\/i>, 598 P.2d 116, 119 (Ariz. Ct. App. 1979) (terming <i>Dyer<\/i> &#8220;a leading decision&nbsp;<\/span><span style=\"font-family: Arial, Helvetica, sans-serif;\">in this area&#8221;).&#8221; <\/span><i><span style=\"font-family: Arial, Helvetica, sans-serif;\">See<a href=\"http:\/\/www.blogger.com\/goog_1987516541\">&nbsp;<\/a><\/span><\/i><span style=\"font-size: 16px;\"><span style=\"font-family: Arial, Helvetica, sans-serif;\"><i><a href=\"http:\/\/docs.justia.com\/cases\/federal\/district-courts\/new-jersey\/njdce\/3:2007cv05614\/208508\/55\/\">Fixture Specialists, Inc. v. Global Construction, LLC<\/a><\/i><\/span><\/span><\/p>\n<p><span style=\"font-family: Arial, Helvetica, sans-serif;\"><br \/><\/span><br \/><span style=\"font-family: Arial, Helvetica, sans-serif;\"><br \/><\/span><br \/><span style=\"font-family: Arial, Helvetica, sans-serif;\"><b><u>Pay-If-Paid Clause &#8211; Majority Rule<\/u><\/b><\/span><br \/><span style=\"font-family: Arial, Helvetica, sans-serif;\"><b><br \/><\/b><\/span><br \/><span style=\"font-family: Arial, Helvetica, sans-serif;\">Pay-if-paid clauses are generally enforced by courts. &nbsp;Two big exceptions to the enforcement of pay-if-paid clauses are New York and California, which have held that pay-if-paid clauses are unenforceable and against public policy. &nbsp;Let&#8217;s deal with the majority rule first though.<\/span><br \/><span style=\"font-family: Arial, Helvetica, sans-serif;\"><br \/><\/span><br \/><span style=\"font-family: Arial, Helvetica, sans-serif;\">Enforcing pay-if-paid clauses is more palatable to courts because there is no &#8220;condition precedent&#8221; to payment. &nbsp;The contract&#8217;s&nbsp;<\/span><span style=\"font-family: Arial, Helvetica, sans-serif;\">pay-if-paid generally clearly states that payment to the subcontractor is to be directly contingent upon the receipt by the general contractor of payment from the owner. &nbsp;<\/span><span style=\"font-family: Arial, Helvetica, sans-serif;\">In <u><a href=\"http:\/\/www.blogger.com\/goog_1987516562\">MidAmerica Const. Management Co., Inc. v.&nbsp;<\/a><\/u><\/span><span style=\"font-family: Arial, Helvetica, sans-serif;\"><u><a href=\"http:\/\/caselaw.findlaw.com\/us-10th-circuit\/1050284.html\">Mastec North America, Inc.<\/a><\/u>, 436 F.3d 1257 (10th Cir. 2006), the Federal Court for the Tenth Circuit first noted the&nbsp;<\/span><span style=\"font-family: Arial, Helvetica, sans-serif;\">distinction between &#8220;pay-when-paid&#8221; and &#8220;pay-if-paid&#8221; clauses:<\/span><br \/><span style=\"font-family: Arial, Helvetica, sans-serif;\"><br \/><\/span><br \/><span style=\"font-family: Arial, Helvetica, sans-serif;\">A typical &#8220;pay-when-paid&#8221; clause might read: &#8220;Contractor shall pay&nbsp;<\/span><span style=\"font-family: Arial, Helvetica, sans-serif;\">subcontractor within seven days of contractor&#8217;s receipt of payment from&nbsp;<\/span><span style=\"font-family: Arial, Helvetica, sans-serif;\">the owner.&#8221; Under such a provision in a construction subcontract, a&nbsp;<\/span><span style=\"font-family: Arial, Helvetica, sans-serif;\">contractor&#8217;s obligation to pay the subcontractor is triggered upon receipt&nbsp;<\/span><span style=\"font-family: Arial, Helvetica, sans-serif;\">of payment from the owner. Most courts hold that this type of clause at&nbsp;<\/span><span style=\"font-family: Arial, Helvetica, sans-serif;\">least means that the contractor&#8217;s obligation to make payment is&nbsp;<\/span><span style=\"font-family: Arial, Helvetica, sans-serif;\">suspended for a reasonable amount of time for the contractor to receive&nbsp;<\/span><span style=\"font-family: Arial, Helvetica, sans-serif;\">payment from the owner. The theory is that a &#8220;pay-when-paid&#8221; clause&nbsp;<\/span><span style=\"font-family: Arial, Helvetica, sans-serif;\">creates a timing mechanism only. Such a clause does not create a&nbsp;<\/span><span style=\"font-family: Arial, Helvetica, sans-serif;\">condition precedent to the obligation to ever make payment, and it does&nbsp;<\/span><span style=\"font-family: Arial, Helvetica, sans-serif;\">not expressly shift the risk of the owner&#8217;s nonpayment to the&nbsp;<\/span><span style=\"font-family: Arial, Helvetica, sans-serif;\">subcontractor. . . .<\/span><br \/><span style=\"font-family: Arial, Helvetica, sans-serif;\"><br \/><\/span><br \/><span style=\"font-family: Arial, Helvetica, sans-serif;\">A typical &#8220;pay-if-paid&#8221; clause might read: &#8220;Contractor&#8217;s receipt of&nbsp;<\/span><span style=\"font-family: Arial, Helvetica, sans-serif;\">payment from the owner is a condition precedent to contractor&#8217;s&nbsp;<\/span><span style=\"font-family: Arial, Helvetica, sans-serif;\">obligation to make payment to the subcontractor; the subcontractor&nbsp;<\/span><span style=\"font-family: Arial, Helvetica, sans-serif;\">expressly assumes the risk of the owner&#8217;s nonpayment and the&nbsp;<\/span><span style=\"font-family: Arial, Helvetica, sans-serif;\">subcontract price includes this risk.&#8221; Under a &#8220;pay-if-paid&#8221; provision in&nbsp;<\/span><span style=\"font-family: Arial, Helvetica, sans-serif;\">a construction contract, receipt of payment by the contractor from the&nbsp;<\/span><span style=\"font-family: Arial, Helvetica, sans-serif;\">owner is an express condition precedent to the contractor&#8217;s obligation&nbsp;<\/span><span style=\"font-family: Arial, Helvetica, sans-serif;\">to pay the subcontractor. A &#8220;pay-if-paid&#8221; provision in a construction&nbsp;<\/span><span style=\"font-family: Arial, Helvetica, sans-serif;\">subcontract is meant to shift the risk of the owner&#8217;s nonpayment under&nbsp;<\/span><span style=\"font-family: Arial, Helvetica, sans-serif;\">the subcontract from the contractor to the subcontractor. In many&nbsp;<\/span><span style=\"font-family: Arial, Helvetica, sans-serif;\">jurisdictions, courts will enforce a &#8220;pay-if-paid&#8221; provision only if that<\/span><br \/><span style=\"font-family: Arial, Helvetica, sans-serif;\">language is clear and unequivocal. Judges generally will find that a&nbsp;<\/span><span style=\"font-family: Arial, Helvetica, sans-serif;\">&#8220;pay-if-paid&#8221; provision does not create a condition precedent, but rather&nbsp;<\/span><span style=\"font-family: Arial, Helvetica, sans-serif;\">a reasonable timing provision, where the &#8220;pay-if-paid&#8221; provision is&nbsp;<\/span><span style=\"font-family: Arial, Helvetica, sans-serif;\">ambiguous.<\/span><br \/><span style=\"font-family: Arial, Helvetica, sans-serif;\"><br \/><\/span><br \/><span style=\"font-family: Arial, Helvetica, sans-serif;\"><b><u>Pay-If-Paid Minority Rule<\/u><\/b><\/span><br \/><span style=\"font-family: Arial, Helvetica, sans-serif;\"><br \/><\/span><br \/><span style=\"font-family: Arial, Helvetica, sans-serif;\">Regardless of the language used in the pay-if-paid clauses, courts in New York and California will not enforce such clauses, holding the clauses to be void and unenforceable as contrary to public policy.&#8221; &nbsp;Interestingly, the courts based their decisions on <a href=\"http:\/\/www.lienitnow.com\/new-york-property-lien-statutes.asp\">New York&#8217;s mechanics lien law<\/a> and <a href=\"http:\/\/www.lienitnow.com\/california-property-lien-statutes.asp\">California&#8217;s mechanics lien law<\/a>. In so finding, the courts held that conditional payment provisions effect an indirect waiver of a subcontractor&#8217;s protected mechanics&#8217; lien rights. &nbsp;<\/span><br \/><span style=\"font-family: Arial, Helvetica, sans-serif;\"><br \/><\/span><br \/><span style=\"font-family: Arial, Helvetica, sans-serif;\">In yet some other states, pay-if-paid clauses have been outlawed by statute: generally in the &#8220;prompt payment&#8221; acts that have been enacted throughout the country. &nbsp;Over 32 states have some type of prompt payment act, which requires timely payment of amounts due from contractors to subcontractors. &nbsp;Massachusetts is one of these states, voiding any pay-if-paid clauses for projects worth over three million dollars, unless the project involves residential construction consisting of 4 or fewer dwelling units. &nbsp;Illinois, Maryland, Missouri, Wisconsin, North Carolina and South Carolina have banned pay-if-paid clauses for all private projects.<\/span><br \/><span style=\"font-family: Arial, Helvetica, sans-serif;\"><br \/><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Over the last four years we&#8217;ve all had to deal with the funding crashes that followed the 2008 financial crisis. &nbsp;In those four years, many have also learned the difference between pay-if-paid clauses and pay-when-paid clauses. But what is the difference between the two, when should each one be used, and why should it matter [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1074,1184,1882,1257,1160,1884,1883],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Pay if Paid v. Pay When Paid Clauses - Which is Which and Who Cares? - Tools of the Trade | LienItNow Blog<\/title>\n<meta name=\"description\" content=\"Over the last four years we&#039;ve all had to deal with the funding crashes that followed the 2008 financial crisis. &nbsp;In those four years, many have also\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.lienitnow.com\/blog\/2012\/03\/pay-if-paid-v-pay-when-paid-clauses.html\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Pay if Paid v. Pay When Paid Clauses - Which is Which and Who Cares? - Tools of the Trade | LienItNow Blog\" \/>\n<meta property=\"og:description\" content=\"Over the last four years we&#039;ve all had to deal with the funding crashes that followed the 2008 financial crisis. &nbsp;In those four years, many have also\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.lienitnow.com\/blog\/2012\/03\/pay-if-paid-v-pay-when-paid-clauses.html\" \/>\n<meta property=\"og:site_name\" content=\"Tools of the Trade | LienItNow Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/LienItNow\/\" \/>\n<meta property=\"article:author\" content=\"https:\/\/facebook.com\/LienItNow\" \/>\n<meta property=\"article:published_time\" content=\"2012-03-26T20:43:00+00:00\" \/>\n<meta property=\"og:image\" content=\"http:\/\/img.ehowcdn.com\/article-new\/ehow\/images\/a08\/1n\/b6\/ask-payment-politely-800x800.jpg\" \/>\n<meta name=\"author\" content=\"Stephen\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@lienitnow\" \/>\n<meta name=\"twitter:site\" content=\"@lienitnow\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Stephen\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.lienitnow.com\/blog\/2012\/03\/pay-if-paid-v-pay-when-paid-clauses.html#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.lienitnow.com\/blog\/2012\/03\/pay-if-paid-v-pay-when-paid-clauses.html\"},\"author\":{\"name\":\"Stephen\",\"@id\":\"https:\/\/www.lienitnow.com\/blog\/#\/schema\/person\/d4ad09932756b36935fd15ab497722fe\"},\"headline\":\"Pay if Paid v. Pay When Paid Clauses &#8211; Which is Which and Who Cares?\",\"datePublished\":\"2012-03-26T20:43:00+00:00\",\"dateModified\":\"2012-03-26T20:43:00+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.lienitnow.com\/blog\/2012\/03\/pay-if-paid-v-pay-when-paid-clauses.html\"},\"wordCount\":1236,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.lienitnow.com\/blog\/#organization\"},\"articleSection\":[\"California Construction Lien\",\"California Mechanics Lien\",\"construction contract clauses\",\"new york construction lien\",\"new york mechanics lien\",\"pay-if-paid clauses\",\"pay-when-paid clauses\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.lienitnow.com\/blog\/2012\/03\/pay-if-paid-v-pay-when-paid-clauses.html#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.lienitnow.com\/blog\/2012\/03\/pay-if-paid-v-pay-when-paid-clauses.html\",\"url\":\"https:\/\/www.lienitnow.com\/blog\/2012\/03\/pay-if-paid-v-pay-when-paid-clauses.html\",\"name\":\"Pay if Paid v. Pay When Paid Clauses - Which is Which and Who Cares? - Tools of the Trade | LienItNow Blog\",\"isPartOf\":{\"@id\":\"https:\/\/www.lienitnow.com\/blog\/#website\"},\"datePublished\":\"2012-03-26T20:43:00+00:00\",\"dateModified\":\"2012-03-26T20:43:00+00:00\",\"description\":\"Over the last four years we've all had to deal with the funding crashes that followed the 2008 financial crisis. &nbsp;In those four years, many have also\",\"breadcrumb\":{\"@id\":\"https:\/\/www.lienitnow.com\/blog\/2012\/03\/pay-if-paid-v-pay-when-paid-clauses.html#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.lienitnow.com\/blog\/2012\/03\/pay-if-paid-v-pay-when-paid-clauses.html\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.lienitnow.com\/blog\/2012\/03\/pay-if-paid-v-pay-when-paid-clauses.html#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.lienitnow.com\/blog\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Pay if Paid v. Pay When Paid Clauses &#8211; Which is Which and Who Cares?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.lienitnow.com\/blog\/#website\",\"url\":\"https:\/\/www.lienitnow.com\/blog\/\",\"name\":\"Tools of the Trade | LienItNow Blog\",\"description\":\"Construction Lien News and Information from LienItNow.com\",\"publisher\":{\"@id\":\"https:\/\/www.lienitnow.com\/blog\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.lienitnow.com\/blog\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.lienitnow.com\/blog\/#organization\",\"name\":\"Tools of the Trade | LienItNow Blog\",\"url\":\"https:\/\/www.lienitnow.com\/blog\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.lienitnow.com\/blog\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.lienitnow.com\/blog\/wp-content\/uploads\/2017\/12\/cropped-logo-1.jpg\",\"contentUrl\":\"https:\/\/www.lienitnow.com\/blog\/wp-content\/uploads\/2017\/12\/cropped-logo-1.jpg\",\"width\":529,\"height\":100,\"caption\":\"Tools of the Trade | LienItNow Blog\"},\"image\":{\"@id\":\"https:\/\/www.lienitnow.com\/blog\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/LienItNow\/\",\"https:\/\/twitter.com\/lienitnow\",\"https:\/\/www.linkedin.com\/company\/lienitnow.com\",\"https:\/\/www.youtube.com\/channel\/UCLbiOHgcanKx5TtfL6q_VUw\/videos\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.lienitnow.com\/blog\/#\/schema\/person\/d4ad09932756b36935fd15ab497722fe\",\"name\":\"Stephen\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.lienitnow.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/db4dcbefbed204d35217154b64af2ea9?s=96&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/db4dcbefbed204d35217154b64af2ea9?s=96&r=g\",\"caption\":\"Stephen\"},\"sameAs\":[\"https:\/\/www.lienitnow.com\",\"https:\/\/facebook.com\/LienItNow\",\"https:\/\/twitter.com\/lienitnow\"],\"url\":\"https:\/\/www.lienitnow.com\/blog\/author\/stephen\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Pay if Paid v. Pay When Paid Clauses - Which is Which and Who Cares? - Tools of the Trade | LienItNow Blog","description":"Over the last four years we've all had to deal with the funding crashes that followed the 2008 financial crisis. &nbsp;In those four years, many have also","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.lienitnow.com\/blog\/2012\/03\/pay-if-paid-v-pay-when-paid-clauses.html","og_locale":"en_US","og_type":"article","og_title":"Pay if Paid v. Pay When Paid Clauses - Which is Which and Who Cares? - Tools of the Trade | LienItNow Blog","og_description":"Over the last four years we've all had to deal with the funding crashes that followed the 2008 financial crisis. &nbsp;In those four years, many have also","og_url":"https:\/\/www.lienitnow.com\/blog\/2012\/03\/pay-if-paid-v-pay-when-paid-clauses.html","og_site_name":"Tools of the Trade | LienItNow Blog","article_publisher":"https:\/\/www.facebook.com\/LienItNow\/","article_author":"https:\/\/facebook.com\/LienItNow","article_published_time":"2012-03-26T20:43:00+00:00","og_image":[{"url":"http:\/\/img.ehowcdn.com\/article-new\/ehow\/images\/a08\/1n\/b6\/ask-payment-politely-800x800.jpg"}],"author":"Stephen","twitter_card":"summary_large_image","twitter_creator":"@lienitnow","twitter_site":"@lienitnow","twitter_misc":{"Written by":"Stephen","Est. reading time":"6 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.lienitnow.com\/blog\/2012\/03\/pay-if-paid-v-pay-when-paid-clauses.html#article","isPartOf":{"@id":"https:\/\/www.lienitnow.com\/blog\/2012\/03\/pay-if-paid-v-pay-when-paid-clauses.html"},"author":{"name":"Stephen","@id":"https:\/\/www.lienitnow.com\/blog\/#\/schema\/person\/d4ad09932756b36935fd15ab497722fe"},"headline":"Pay if Paid v. Pay When Paid Clauses &#8211; Which is Which and Who Cares?","datePublished":"2012-03-26T20:43:00+00:00","dateModified":"2012-03-26T20:43:00+00:00","mainEntityOfPage":{"@id":"https:\/\/www.lienitnow.com\/blog\/2012\/03\/pay-if-paid-v-pay-when-paid-clauses.html"},"wordCount":1236,"commentCount":0,"publisher":{"@id":"https:\/\/www.lienitnow.com\/blog\/#organization"},"articleSection":["California Construction Lien","California Mechanics Lien","construction contract clauses","new york construction lien","new york mechanics lien","pay-if-paid clauses","pay-when-paid clauses"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.lienitnow.com\/blog\/2012\/03\/pay-if-paid-v-pay-when-paid-clauses.html#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.lienitnow.com\/blog\/2012\/03\/pay-if-paid-v-pay-when-paid-clauses.html","url":"https:\/\/www.lienitnow.com\/blog\/2012\/03\/pay-if-paid-v-pay-when-paid-clauses.html","name":"Pay if Paid v. Pay When Paid Clauses - Which is Which and Who Cares? - Tools of the Trade | LienItNow Blog","isPartOf":{"@id":"https:\/\/www.lienitnow.com\/blog\/#website"},"datePublished":"2012-03-26T20:43:00+00:00","dateModified":"2012-03-26T20:43:00+00:00","description":"Over the last four years we've all had to deal with the funding crashes that followed the 2008 financial crisis. &nbsp;In those four years, many have also","breadcrumb":{"@id":"https:\/\/www.lienitnow.com\/blog\/2012\/03\/pay-if-paid-v-pay-when-paid-clauses.html#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.lienitnow.com\/blog\/2012\/03\/pay-if-paid-v-pay-when-paid-clauses.html"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.lienitnow.com\/blog\/2012\/03\/pay-if-paid-v-pay-when-paid-clauses.html#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.lienitnow.com\/blog"},{"@type":"ListItem","position":2,"name":"Pay if Paid v. Pay When Paid Clauses &#8211; Which is Which and Who Cares?"}]},{"@type":"WebSite","@id":"https:\/\/www.lienitnow.com\/blog\/#website","url":"https:\/\/www.lienitnow.com\/blog\/","name":"Tools of the Trade | LienItNow Blog","description":"Construction Lien News and Information from LienItNow.com","publisher":{"@id":"https:\/\/www.lienitnow.com\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.lienitnow.com\/blog\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.lienitnow.com\/blog\/#organization","name":"Tools of the Trade | LienItNow Blog","url":"https:\/\/www.lienitnow.com\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.lienitnow.com\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/www.lienitnow.com\/blog\/wp-content\/uploads\/2017\/12\/cropped-logo-1.jpg","contentUrl":"https:\/\/www.lienitnow.com\/blog\/wp-content\/uploads\/2017\/12\/cropped-logo-1.jpg","width":529,"height":100,"caption":"Tools of the Trade | LienItNow Blog"},"image":{"@id":"https:\/\/www.lienitnow.com\/blog\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/LienItNow\/","https:\/\/twitter.com\/lienitnow","https:\/\/www.linkedin.com\/company\/lienitnow.com","https:\/\/www.youtube.com\/channel\/UCLbiOHgcanKx5TtfL6q_VUw\/videos"]},{"@type":"Person","@id":"https:\/\/www.lienitnow.com\/blog\/#\/schema\/person\/d4ad09932756b36935fd15ab497722fe","name":"Stephen","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.lienitnow.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/db4dcbefbed204d35217154b64af2ea9?s=96&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/db4dcbefbed204d35217154b64af2ea9?s=96&r=g","caption":"Stephen"},"sameAs":["https:\/\/www.lienitnow.com","https:\/\/facebook.com\/LienItNow","https:\/\/twitter.com\/lienitnow"],"url":"https:\/\/www.lienitnow.com\/blog\/author\/stephen"}]}},"_links":{"self":[{"href":"https:\/\/www.lienitnow.com\/blog\/wp-json\/wp\/v2\/posts\/1048"}],"collection":[{"href":"https:\/\/www.lienitnow.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lienitnow.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lienitnow.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lienitnow.com\/blog\/wp-json\/wp\/v2\/comments?post=1048"}],"version-history":[{"count":0,"href":"https:\/\/www.lienitnow.com\/blog\/wp-json\/wp\/v2\/posts\/1048\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.lienitnow.com\/blog\/wp-json\/wp\/v2\/media?parent=1048"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lienitnow.com\/blog\/wp-json\/wp\/v2\/categories?post=1048"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lienitnow.com\/blog\/wp-json\/wp\/v2\/tags?post=1048"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}