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Pay-if-Paid Clause
What is a Pay-if-Paid Clause?
A Pay-if-Paid Clause is a contractual agreement prevalent in the construction industry. Generally, this clause can be found in subcontracts between the General Contractor(GC) and their subcontractors. According to the clause, the GC is not obliged to pay the subcontractors unless and until they themselves have received full payment from the project owner. Therefore, it effectively transfers the risk of the project owner's insolvency from the GC to their subcontractors. It serves as a protection for the GC against financial instability. This type of clause has its controversies, as some jurisdictions view it as unfair to subcontractors due to the assignment of financial risk.
Trusted by trade contractors across the country
Other construction terms
What is a partial lien waiver?
A partial lien waiver (sometimes called a progress lien waiver or partial waiver of lien) is a legal document used in construction where a contractor, subcontractor, or supplier waives their right to file a mechanics lien for a specific, partial amount of money already received.
Issued alongside progress payments, a partial waiver applies only to the amount paid through a specific date—leaving the right to lien open for any future or uncollected funds. These can be conditional (protecting you by taking effect only after the check clears) or unconditional (taking effect immediately upon signing). Tracking them carefully prevents payment disputes and keeps cash moving across job sites.
How Siteline Helps:
Managing partial waivers across every pay app can quickly bottleneck your cash flow. Siteline automates the entire workflow—from generating and sending your own progress lien waivers to GCs, to collecting and tracking signed waivers from lower-tier vendors and suppliers before payments are released.
What is WH-347?
WH-347 is a form utilized in the construction industry by contractors and subcontractors engaged in federal or federally-assisted construction contracts. This certified payroll form, issued by the U.S. Department of Labor, requires contractors to report detailed wage information for employees including hours worked, job classification, rates of pay, and deductions. The purpose of the WH-347 form is to ensure contractors are compliant with the Fair Labor Standards Act regulations. Witnessed and attested to by an assigned company official, this form plays a crucial role in the transparent and fair operation of the construction industry, ensuring that workers are compensated according to stipulated guidelines and in line with labor law regulations.
What are Uninstalled Materials?
Uninstalled materials refer to construction materials that have been purchased but are yet to be put in place or installed in a construction project. They are typically stored on-site or at a secure location and are accounted for in a contractor's Work-In-Progress report. These materials may include items like bricks, steel, concrete, wood, electrical wiring, piping, insulation, and fixtures. It is crucial for project managers to properly track and manage these materials as they represent a significant investment and, if misplaced, lost, or damaged, could lead to costly delays and overruns in the project. Their handling requires proper planning to ensure safe storage, timely installation, and effective use in the construction process.
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