Mark pay-when-paid provisions in a construction contract
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- From the contract, list each clause that makes a party's liability to pay, or the due date for payment, depend on that party being paid by someone else, or depend on another contract. Quote the clause and its number. Do not advise whether it has effect.
- What the lawyer must review
- The lawyer decides which listed clauses are pay-when-paid provisions and have no effect, and which payment obligations remain.
- Written for / version
- US
Open a jurisdiction version of this task to see which instruments apply: US
Who does what
| Role | What they do |
|---|---|
| Assistance | From the contract, list each clause that makes a party's liability to pay, or the due date for payment, depend on that party being paid by someone else, or depend on another contract. Quote the clause and its number. Do not advise whether it has effect. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Use the security-of-payment Act of the place where the work is done. The definition above is the New South Wales section.
- Include due-date clauses, not only clauses that deny liability.
- Include a clause that ties payment to the operation of another contract, even if it does not name the head contract.
- The lawyer, not the list, decides that a clause has no effect.
Sources
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.