Under a pay-when-paid clause, if the owner never pays the main contractor, when must the main contractor pay the subcontractors?
A) on the date the owner was due to pay the main contractor
B) a reasonable time after the payment was due
C) when the subcontractor has completed work under the subcontract
D) if the owner never pays, the main contractor is not required to pay the subcontractor

Question

Quizplus · Accepted Answer

Pay-when-paid clauses do not create a condition precedent to payment.

Under a Pay-When-Paid Clause, If the Owner Never Pays the Main