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Re: Pay when Paid

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I do not know if it is legal, but we are subjected to this clause all the
time.  And I might add that it is rare that we are not paid for our work.  We
sometimes have to wait a long time to get paid, but our invoices that have to
be written off for non-payment are less than 1% of our total billings.
Also, when we are the prime on a project (such as for a seismic retrofit), we
use the same clause when we hire the Architect and other consultants to work
for us.

Bill Allen, S.E. @ ALLEN DESIGNS wrote:

> I was talking to a colleague today about a "pay when paid" clause in
> contracts. He told me that this was an illegal clause and is therefore not
> enforceable (sp?). Does anyone have any legal experience with this?
> Regards,
> Bill Allen