A pay if paid clause may be included in a construction subcontract between contracting tiers, such as between a contractor and a subcontractor or a subcontractor and a sub-subcontractor. A valid pay if paid clause excuses the upstream party from having to pay the downstream party for acceptable work if the upstream party has not itself been paid for the work by a third party. These clauses include practical guidance and drafting notes.
PAY IF PAID CLAUSES