---
title: "Draft a payment clause that does not depend on payment further up the chain"
url: "https://ailawframework.com/practice/construction-and-infrastructure/draft-a-payment-clause-that-does-not-depend-on-payment-further-up-the-ch"
type: "task"
site: "AI Law Framework"
id: "A11-JU20261022-2"
practice_area: "Construction & Infrastructure"
tier: "yellow"
lawyer_review: "required"
last_reviewed: "2026-10-22"
---

# Draft a payment clause that does not depend on payment further up the chain

> From the marked pay-when-paid list and the payment timing the lawyer instructs, prepare a first-pass clause that states the liability to pay and the due date without reference to payment under another contract.

Canonical page: https://ailawframework.com/practice/construction-and-infrastructure/draft-a-payment-clause-that-does-not-depend-on-payment-further-up-the-ch  
Last reviewed: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Construction & Infrastructure](https://ailawframework.com/practice/construction-and-infrastructure.md) |
| Human involvement | Yellow: Lawyer and AI draft together |
| How AI is used | From the marked pay-when-paid list and the payment timing the lawyer instructs, prepare a first-pass clause that states the liability to pay and the due date without reference to payment under another contract. |
| What the lawyer must review | The lawyer rewrites the clause to match the agreed timing, checks it against the statutory definition, and approves it before the contract is issued. |
| Written for / versions | 1 jurisdiction versions below |

## Checking plan

**Source-by-source verification**

Read the replacement clause against each limb of the pay-when-paid definition before it is issued.

- What the AI does: From the marked pay-when-paid list and the payment timing the lawyer instructs, prepare a first-pass clause that states the liability to pay and the due date without reference to payment under another contract.
- What the lawyer does: The lawyer rewrites the clause to match the agreed timing, checks it against the statutory definition, and approves it before the contract is issued.
- Who reviews: Responsible lawyer with competence in the matter
- Basis: Practical workflow informed by the linked primary sources; the traffic light and working checks are editorial guidance, not a court classification.
- Why: The level reflects what the work is, the consequence of an error, and how much of the output the lawyer must independently re-derive.

## Checks the lawyer makes

1. Confirm the due date is a date or a period, not the date the head contractor is paid.
2. Confirm the clause does not condition liability on the operation of the head contract.
3. Check the rest of the contract for a second clause that restores the dependency.
4. The lawyer approves the final words. The first pass is not issued.

## Notes

- These are suggested working checks. Confirm the required checking with the responsible lawyer before work starts; the checking approach does not establish permission to use AI.

## Sources

- [Building and Construction Industry Security of Payment Act 1999 (NSW) s 12](https://legislation.nsw.gov.au/view/html/inforce/current/act-1999-046#sec.12) (checked 2026-10-22)

## Jurisdiction versions

| Jurisdiction | Level |
| --- | --- |
| [United States](https://ailawframework.com/practice/construction-and-infrastructure/draft-a-payment-clause-that-does-not-depend-on-payment-further-up-the-ch/united-states.md) | Yellow |

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*