A clause saying the GC only has to pay a subcontractor if and when the owner pays the GC first.
A pay-if-paid clause makes the general contractor's payment to a subcontractor contingent on the general contractor first receiving payment from the owner for that same work. If the owner never pays the GC, the subcontractor may have no contractual right to payment. These clauses are enforceable in many but not all states, and their enforceability is subject to strict interpretation.
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