Pay-When-Paid vs. Pay-If-Paid: The Subcontract Clauses That Shift Owner Risk

Pay-when-paid and pay-if-paid clauses are the two subcontract provisions that most distinctively shift risk between general contractors and their subs. They look similar but have dramatically different legal meanings — one is a timing provision, the other is a condition precedent that can wipe out payment rights entirely. Here is the difference, the state-by-state legal landscape, and why the clause you sign matters more than the one you thought you signed.