Pay when paid
A clause making your payment depend on the other party being paid.
by Jack Butler-Kettle · About 1 min readShare
Further detail
Read this alongside section 113 of the Housing Grants, Construction and Regeneration Act 1996.
For construction contracts within the relevant statutory regime, payment generally cannot be made conditional on the payer receiving payment from someone else. The legislation contains a specified insolvency exception. Other conditional-payment wording and agreements outside the regime require their own analysis.
Do not accept an upstream payment problem as the whole answer. Overdue payment recovery can help examine the payment obligation and the reason given for withholding money.