R-02 · Tier 1 · Payment
Cross-Project Offset
Contractor may apply money owed on one project to alleged breaches on another project.
What MillworkShield looks for
This is the business risk behind the clause.
Risk
The GC can weaponize earned funds from one job against disputes on another.
Cleaner ask
Strike entirely; each project's funds should stand alone.
Reference context
Not in AIA A401 or ConsensusDocs 750; custom GC-favoring add.
Search nearby wording
condition precedentpayment by ownerif contractor is paidpay when paid
Related guide
Pay-if-paid: the clause that makes your shop finance the owner
Can we revise the payment clause so approved work is paid within a fixed window and owner nonpayment that is unrelated to our scope does not become our shop's credit risk?