R-07 · Tier 2 · Payment
Pay-if-Paid as Absolute Condition Precedent (No Outside Date)
Pay-when-paid is drafted as an absolute condition precedent with no outside payment date.
What MillworkShield looks for
This is the business risk behind the clause.
Risk
The sub can wait indefinitely for Owner payment and must invoke statute to get paid.
Cleaner ask
Add 7 days from Owner payment and a 60-day outside date from proper application.
Reference context
AIA A401 §11.3 treats pay-when-paid as timing with a reasonable-time backstop; TX Bus. & Com. Code §56.052 can cap proper contingent-payment clauses.
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?