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Pay when Paid clause

Georgia

We typically strike this clause from any contract but this GC is holding tight to it and my partner's don't want to walk. Since Georgia does enforce them, what verbiage can I include to limit my risk?

1 reply

Mar 3, 2021

Your otions will dpend upon whether the GC is willing to negotiate around the edges of the this provision. Options include putting a cap or minimum upon the amount that is subject to the provision, limiting the provision to situations in which the owner is withholding payment because of an issue with your work, limit the provision to your margin on the invoice, or limit the provision to only apply for the first 45 or 60, or 90 days of the invoice.  

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