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Pay When Paid and Pay if Paid Clauses: Who Bears the Risk of Non-Payment?

Explore the controversies, issues, and legal rights and remedies surrounding pay when paid and pay if paid clauses.

The existence of a pay when paid or a pay if paid clause can be the difference between whether a contractor or its subcontractor remains in business when an owner does not pay its contractor, even if non-payment is justified. Pay if clauses may also allow a subcontractor to pursue a claim directly against an owner, despite a lack of privity of contract. Yet pay when paid and pay if paid clauses are two of the most misunderstood, controversial, and contentious terms frequently included in subcontracts nowadays. Indeed, contractors, subcontractors, and state legislatures have split as to whether pay when paid and pay if paid clauses are a fair allocation of the risk of non-payment or a violation of public policy. This topic will help you recognize pay when paid and pay if paid clauses, to understand the requirements for enforcing pay when paid and pay if paid clauses, and to negotiate pay when paid and pay if paid clauses. This content will also help persons who administer subcontracts and those who prosecute or defend payment disputes to better understand their rights, remedies, and legal options when payment is delayed or not made as a result of a pay when paid or a pay if paid clause. This information is critical to those who need to know and understand their rights and obligations under the payment provisions of subcontracts.

Runtime: 84 minutes
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Over 31 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.

Agenda

Overview

  • Conditional Payment Provisions in General

Payment Absent a Conditional Payment Provision

  • Common Law
  • Prompt Payment Acts

Pay When Paid/Pay If Paid

  • Definitions
  • Risks of Delayed vs. Non-Payment
  • Different Perspectives on the Risk of Non-Payment

- Subcontractor Perspective

- Contractor Perspective

- Owner Perspective

Enforceability

  • Freedom of Contract
  • Public Policy

- Pay If Paid

- Pay When Paid

Defeating or Avoiding Pay If Paid

  • Ambiguities
  • Lien Laws
  • Bond Laws
  • Settlement
  • Implied Duty of Good Faith and Fair Dealing
  • Equitable Doctrines

Drafting and Modifying Pay If Paid/Pay When Paid Clause

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Why Lorman?

Over 31 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.

Credits

OnDemand Webinar

This course was last revised on June 27, 2018.

Call 1-866-352-9540 for further credit information.

  • AIA 1.25
     
  • Lorman Business Center, Inc. is registered with the AIA Continuing Education System (AIA/CES). This 1.25 hour program offers 1.25 Learning Unit hours, which will be reported directly to the AIA/CES for AIA members.
     
  • AK ENG 1.0
     
  • This Ondemand program is applicable for professional development hours through the Alaska State Board of Registration for Architects, Engineers and Land Surveyors. Professional development hours: 1.0. *Please check the rules and requirements in your state for compliance.
     
  • AL ENG
     
  • This Ondemand program is applicable for professional development hours through the Alabama Board of Licensure for Professional Engineers and Professional Land Surveyors.* *Please check the rules and requirements in your state for compliance.
     
  • AR ENG
     
  • This Ondemand program is applicable for 1.4 professional development hours.* *Please check the rules and requirements in your state for compliance.
     
  • FL ENG 1.0
     
  • This course has been approved for 1.0 PDH by the Florida Board of Professional Engineers in the Areas of Practice.
     
  • GA ENG
     
  • This Ondemand program is applicable through the Georgia State Board of Registration for Professional Engineers.for 1.4 professional development hours.* *Please check the rules and requirements in your state for compliance.
     
  • IA ENG
     
  • This Ondemand program is applicable for professional development hours for engineers. Please refer to Chapter 3, 193C IAC.*
     
  • ID ENG 1.5
     
  • This Ondemand program is applicable for 1.5 professional development hours through the Idaho Board of Professional Engineers and Professional Land Surveyors.* *Please check the rules and requirements in your state for compliance.
     
  • IL ENG 1.5
     
  • This program is applicable for 1.5 professional development hours through the Illinois Society for Professional Engineers.* *Please check the rules and regulations in your state for compliance.
     
  • IN ENG 1.6
     
  • This Ondemand program is applicable for 1.6 professional development hours through the Indiana State Board for Professional Engineers.* *Please check the rules and requirements in your state for compliance.
     
  • KS ENG 1.0
     
  • This program is applicable for 1.0 professional development hours for engineers.* *Please check the rules and regulations in your state for compliance.
     
  • KY ENG 1.4
     
  • This Ondemand program is applicable for 1.4 professional development hours for engineers.* *Please check the rules and requirements in your state for compliance.
     
  • LA ENG
     
  • The Louisiana Professional Engineering and Land Surveying Board (LAPELS) no longer approves providers or courses. Lorman Business Center, Inc. feels that this course is worth 1.5 PDH(s). According to LAPELS' rules, It will be the responsibility of the licensee to determine if a Course/Activity offered by an unapproved sponsor/provider is an Acceptable Activity.
     
  • MD ENG 1.0
     
  • Lorman Business Center, Inc. is a board approved sponsor with the Maryland Board of Professional Engineers. This course qualifies for 1.0 professional development hours.
     
  • ME ENG 1.0
     
  • This ondemand program is applicable for a maximum of 1.0 hours toward the annual PDH requirement. Please note: The State of Maine Professional Engineers Registration Board does not pre-approve courses for professional development credit.* *Please check the rules and requirements in your state for compliance.
     
  • MN ENG 1.0
     
  • This course is applicable for a maximum of 1.0 hours toward the PDH requirement for engineers. Please note: The Minnesota State Board of Registration for Engineers has final authority on the acceptance of individual courses.
     
  • MO ENG 1.5
     
  • This ondemand course is applicable for 1.5 professional development hours for engineers.* *Please check the rules and requirements in your state for compliance.
     
  • MS ENG
     
  • This ondemand course is applicable for professional development hours through the Mississippi State Board of Registration for Professional Engineers.* *Please check the rules and requirements in your state for compliance.
     
  • MT ENG 1.0
     
  • This ondemand course is applicable for 1.0 professional development hours for engineers.* *Please check the rules and requirements in your state for compliance.
     
  • NC ENG 1.5
     
  • Lorman Business Center, Inc. is an approved sponsor of the North Carolina State Board of Examiners for Engineers and Surveyors. This course qualifies for 1.5 professional development hours for engineers.
     
  • ND ENG 1.5
     
  • Lorman Education Services is an approved provider through the North Dakota State Board of Registration for Engineers and Land Surveyors. This seminar qualifies for 1.5 of continuing professional competence for engineers.
     
  • NE ENG
     
  • This course is applicable for professional development hours for engineers if the course is continuing engineering education for you..* *Please check the rules and requirements in your state for compliance.
     
  • NH ENG 1.0
     
  • This course is applicable for 1.0 professional development hours for engineers.* *Please check the rules and requirements in your state for compliance. The New Hampshire Board of Engineers has final authority on granting approval.
     
  • NJ ENG 1.0
     
  • Lorman Business Center, Inc. is authorized as a provider to offer courses through the New Jersey Board of Professional Engineers. This course is applicable for 1.0 CPC credits for engineers. * *Please check the NJ State rules and requirements for compliance.
     
  • NM ENG 1.5
     
  • This course is applicable for 1.5 professional development hours for engineers.* *Please check the rules and requirements in your state for compliance.
     
  • NV ENG 1.0
     
  • This course is applicable for 1.0 professional development hours through the Nevada State Board of Engineering and Land Surveyors.* *Please check the rules and requirements in your state for compliance.
     
  • OH ENG
     
  • This ondemand course is applicable for continuing education credit for engineers through the Ohio State Board of Licensure for Professional Engineers provided it is a relevant managerial, ethical or technical topic relevant to the practice of engineering or surveying.* *Please check the rules and requirements in your state for compliance
     
  • OK ENG
     
  • This course is applicable for professional development hours for engineers.* *Please check the rules and requirements in your state for compliance.
     
  • OR ENG
     
  • This course is applicable toward engineering continuing education hours in Oregon, please refer to your rules and laws.
     
  • PA ENG 1.6
     
  • This program is applicable for 1.6 PDHs for engineers through the Pennsylvania State Board of Professional Engineers, Land Surveyors and Geologists.* *Please check the rules and requirements in your state for compliance.
     
  • SC ENG 1.0
     
  • This course is applicable for 1.0 hours toward the PDH requirement for engineers through the South Carolina Board of Registration for Professional Engineers.* *Please check the rules and requirements in your state for compliance.
     
  • SD ENG
     
  • This course is applicable for professional development hours for engineers in South Dakota.* *Please check the rules and requirements in your state for compliance.
     
  • TN ENG
     
  • This course is applicable for professional development hours for engineers.* *Please check the rules and requirements in your state for compliance.
     
  • TX ENG
     
  • This Ondemand course is applicable for professional development hours for engineers.* *Please check the rules and requirements in your state for compliance.
     
  • UT ENG
     
  • This course is applicable for professional development hours for engineers.* *Please check the rules and requirements in your state for compliance.
     
  • VA ENG 1.5
     
  • This program is applicable for 1.5 hours of continuing education through the Board for Architects, Professional Engineers, Land Surveyors, Certified Interior Designers and Landscape Architects (APELSCIDLA BOARD).* *Please check the rules and requirements in your state for compliance.
     
  • WI ENG 1.5
     
  • This course is applicable for a maximum of 1.5 hours toward the PDH requirement for engineers.* *The Wisconsin Engineer Section has final authority on the acceptance of individual courses and providers.
     
  • WV ENG 1.0
     
  • This course is applicable for 1.0 professional development hours for engineers.* *Please check the rules and requirements in your state for compliance.
     
  • WY ENG 1.6
     
  • This course is applicable for 1.6 professional development hours for Wyoming engineers.* *Please check the rules and requirements in your state for compliance.
     

To earn each credit Lorman offers through the OnDemand learning platform, you need to watch 100% of the program. Also, for certain credits you will need to fulfill additional requirements which will be displayed on the "credits" tab when viewing the course.

  • Those applying for AIA and HRCI must view 100% of the program and answer the questions following the program.

This program does NOT qualify, nor meet the National Standard for NASBA accreditation.

Audio & Reference Manual

  • Arizona CLE 1.5
     
  • CA MCLE 1.5
     
  • CT CLE 1.5
     
  • GA CLE 1.5
     
  • HI CLE 1.5
     
  • IL CLE 1.5
     
  • ME CLE 1.5
     
  • MT CLE 1.5
     
  • NJ CLE 1.8
     
  • NV CLE 1.5
     
  • VT CLE 1.5
     
  • WA CLE 1.5
     
  • WV MCLE 1.8
     
The CLE Code is ONLY a requirement when applying for CLE Credit in California (for participatory credit), Kansas, New Jersey or New York. Other states do not need to supply the CLE Code to apply for CLE credit.

This program does NOT qualify, nor meet the National Standard for NASBA accreditation.

MP3 Download

  • Arizona CLE 1.5
     
  • CA MCLE 1.5
     
  • CT CLE 1.5
     
  • HI CLE 1.5
     
  • IL CLE 1.5
     
  • ME CLE 1.5
     
  • MT CLE 1.5
     
  • NJ CLE 1.8
     
  • NV CLE 1.5
     
  • VT CLE 1.5
     
  • WA CLE 1.5
     
  • WV MCLE 1.8
     
The CLE Code is ONLY a requirement when applying for CLE Credit in California (for participatory credit), Kansas, New Jersey or New York. Other states do not need to supply the CLE Code to apply for CLE credit.

This program does NOT qualify, nor meet the National Standard for NASBA accreditation.

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More Program Information

Why Lorman?

Over 31 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.

Faculty

Scott Cahalan

Scott Cahalan

Smith, Gambrell & Russell, LLP

  • Partner in the construction law section of Smith, Gambrell & Russell LLP, an AmLaw 200 firm
  • Adjunct professor of Design and Construction law at Georgia Institute of Technology
  • General counsel to the Georgia Utility Contractor’s Association
  • Practice includes all aspects of design and construction law from drafting and negotiating prime contractors, subcontracts, and purchase orders to mediating, arbitrating, and litigating construction disputes
  • Drafted form construction contracts for the Associated Owners and Developers, a national organization
  • Recognized by Chambers USA and Georgia Super Lawyers
  • Frequent author and lecturer on construction law
  • Member of the State Bar of Georgia, Northern District of Georgia, and 11th Circuit Court of Appeals
  • J.D. degree, with honors, University of Georgia; B.S. degree in construction engineering, Iowa State University
  • Can be contacted at [email protected], [email protected] or (404) 815-3711
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Why Lorman?

Over 31 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.

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Product ID: 404353
Published 2018
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