A clause saying the GC will pay a subcontractor within a reasonable time after receiving payment from the owner.
A pay-when-paid clause makes payment to a subcontractor due within a reasonable time after the general contractor receives payment from the owner, creating a timing condition rather than a condition precedent. Unlike pay-if-paid, pay-when-paid does not eliminate the GC's payment obligation — it only defers it temporarily. Courts generally treat pay-when-paid as a timing provision rather than a risk transfer.
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