as a subcontractor, you need to read the payment section of your contract carefully before signing to ensure the payment terms are not stated in a way that will cause you and your business harm. this contingent payment term usually means that payment to the subcontractor is contingent on the general contractor’s receipt of payment from the owner. the gc is relieved of the obligation to pay the subcontractor if they have not received payment from the owner. while the pay-when-paid clause is not as dangerous to the subcontractor as the pay-if-paid clause, it could still affect the timing of payment from the general contractor to the subcontractor.
we discussed the two types of contingent payment clauses in our last blog, but that legal language can be tricky and hard to understand. subcontractor is entitled to payment only for that portion of the subcontract work for which faulknerusa has been paid by owner. the subcontract amount includes compensation to subcontractor for the assumption of this risk. the key for subcontractors is to understand what contingent payment clauses look like before signing the subcontract so that you can review with an attorney and protect yourself from these dangerous clauses. speak with an attorney at our firm today so that we can guide you through these negotiations and help ensure that you do not become the victim of a contingent payment clause.
(b) the due date for payment of any amounts retained by the contracting officer in accordance with the clause at 52.232-5, payments under fixed-price construction contracts, is as specified in the contract or, if not specified, 30 days after approval by the contracting officer for release to the contractor. (vi) name and address of contractor official to whom payment is to be sent (must be the same as that in the contract or in a proper notice of assignment). (iii) in the case of a final invoice for any balance of funds due the contractor for work or services performed, the amount was not subject to further contract settlement actions between the government and the contractor.
(i) the designated payment office will pay a penalty amount, calculated in accordance with the prompt payment regulations at 5 cfr part 1315 in addition to the interest penalty amount only if- (b) the designated payment office does not pay the interest penalty within 10 days after the date the invoice amount is paid; and (c) the contractor makes a written demand to the designated payment office for additional penalty payment, in accordance with paragraph (a)(6)(ii) of this clause, postmarked not later than 40 days after the date the invoice amount is paid. permit the contractor or subcontractor to make a determination that part or all of the subcontractor’s request for payment may be withheld in accordance with the subcontract agreement; and (3) withholding requirements. a dispute between the contractor and subcontractor relating to the amount or entitlement of a subcontractor to a payment or a late payment interest penalty under a clause included in the subcontract pursuant to paragraph (c) of this clause does not constitute a dispute to which the government is a party. the contractor’s obligation to pay an interest penalty to a subcontractor pursuant to the clauses included in a subcontract under paragraph (c) of this clause shall not be construed to be an obligation of the government for such interest penalty.
the payment terms of a contract are the result of an agreement between a contractor and subcontractor. they two set the terms when they payment terms specify the amount of money that is expected to be paid to the general contractor by the client based on the agreed-upon price. a net payment means that the payment is due within a specified number of days from the date the contractor issued the invoice. net 10, net 30, or net 60 (found, typical payment terms for contractors, typical payment terms for contractors, independent contractor payment terms, payment terms in contract sample, general contractor payment schedule template.
the contractor shall pay to his/ her subcontractors or material suppliers, and each subcontractor shall pay to his/ her subcontractor or material supplier, within seven (7) days of receipt of each progress payment, unless otherwise agreed in writing by the parties, the respective amounts allowed the contractor or the contractor shall pay the subcontractor each progress payment no later than seven working days after the contractor receives payment from the owner. the (1) prompt payment for subcontractors. a payment clause that obligates the contractor to pay the subcontractor for satisfactory performance under its what is a reasonable period of time for a subcontractor to expect to wait for payment? an example of a conditional payment clause includes: (i), progress payment terms examples, project payment terms examples, construction payment, invoice payment terms template, contract payment schedule, standard down payment for contractor, progressive payment terms, proposal payment terms, contractor payment schedule california, standard payment terms by industry.
When you try to get related information on subcontractor payment terms, you may look for related areas. typical payment terms for contractors, independent contractor payment terms, payment terms in contract sample, general contractor payment schedule template, progress payment terms examples, project payment terms examples, construction payment, invoice payment terms template, contract payment schedule, standard down payment for contractor, progressive payment terms, proposal payment terms, contractor payment schedule california, standard payment terms by industry.