Source: https://www.quantsurv.com/library/glossary/pay-when-paid
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Content reviewed: 2026-10-10

# Pay when paid

A clause making your payment depend on the other party being paid.

by [Jack Butler-Kettle](<https://www.quantsurv.com/about#jack-butler-kettle>) · About 1 min readShare

## Further detail

Read this alongside [section 113 of the Housing Grants, Construction and Regeneration Act 1996](<https://www.legislation.gov.uk/ukpga/1996/53/section/113>).

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](<https://www.quantsurv.com/claims?service=%2Fnot-paid%2Fservices%2Flate-payment-recovery#client-types>) can help examine the payment obligation and the reason given for withholding money.

## Sources

1.  [Housing Grants, Construction and Regeneration Act 1996, s 113 (Prohibition of conditional payment provisions)](<https://www.legislation.gov.uk/ukpga/1996/53/section/113>). legislation.gov.uk.

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