---
title: "Mark pay-when-paid provisions in a construction contract"
url: "https://ailawframework.com/practice/construction-and-infrastructure/mark-pay-when-paid-provisions-in-a-construction-contract"
type: "task"
site: "AI Law Framework"
id: "A11-JU20261022-1"
practice_area: "Construction & Infrastructure"
tier: "yellow"
lawyer_review: "required"
last_reviewed: "2026-10-22"
---

# Mark pay-when-paid provisions in a construction contract

> 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.…

Canonical page: https://ailawframework.com/practice/construction-and-infrastructure/mark-pay-when-paid-provisions-in-a-construction-contract  
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 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 / versions | 1 jurisdiction versions below |

## Checking plan

**Source-by-source verification**

Check each listed clause against the contract and against each limb of the definition.

- What the AI does: 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 does: The lawyer decides which listed clauses are pay-when-paid provisions and have no effect, and which payment obligations remain.
- 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. Use the security-of-payment Act of the place where the work is done. The definition above is the New South Wales section.
2. Include due-date clauses, not only clauses that deny liability.
3. Include a clause that ties payment to the operation of another contract, even if it does not name the head contract.
4. The lawyer, not the list, decides that a clause has no effect.

## 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/mark-pay-when-paid-provisions-in-a-construction-contract/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.*