Pay-When-Paid Clauses in Boca Raton Construction Contracts: What South Florida Subcontractors Need to Know Before Signing
You did the work. The general contractor got paid, but you’re still waiting on a check. When you ask about it, the answer is always the same: we are waiting on the owner.
If your contract includes a pay-when-paid clause, it can be months before you actually get payment for your work. Our Boca Raton construction litigation lawyer explains what you need to know about pay-when-paid clauses, the common problems South Florida subcontractors face with them, and your legal options for getting paid.
How Pay-When-Paid Clauses Can Affect South Florida Subcontractors
A pay-when-paid clause generally addresses when a subcontractor must be paid if the general contractor has not yet received payment from the owner. That can create problems when the owner and general contractor dispute something unrelated to your work.
The exact wording matters. A provision that delays payment may be treated differently from one that makes the subcontractor bear the risk of the owner’s nonpayment. Before signing, look closely at:
- When payment is due: Does the contract establish a reasonable deadline or make payment dependent on another party?
- What happens if the owner refuses to pay: Does the contract explain who bears that risk?
- Whether the general contractor must pursue payment: Some agreements address what the contractor must do to collect from the owner.
- Whether the provision conflicts with other payment terms: Read the payment clause together with the rest of the contract.
- Your lien rights: Florida’s Construction Lien Law gives certain subcontractors lien rights when they meet statutory requirements.
Florida Statutes Section 713.346 addresses payment of undisputed construction obligations and provides remedies when qualifying payments are not made within the time required by law.
What Can You Do When a Boca Raton Contractor Won’t Pay?
A pay-when-paid clause does not mean you’re destined to wait indefinitely. Florida law gives subcontractors meaningful tools to recover payment, but you need to act fast and before deadlines pass.
Start by reviewing your contract and determining exactly what payment is owed and when it became due. Depending on the circumstances, you may want to:
- Request a written explanation to determine whether the owner has withheld payment and why.
- Gather documents proving what you’re owed and that you completed the work.
- Check your lien rights, keeping in mind that Florida’s lien laws have strict notice and recording requirements.
- Have a lawyer review the payment clause and send a formal demand letter.
- Consider a payment bond claim.
Don’t wait for a payment dispute to get bigger. The sooner you get legal help, the more options you may have.
Waiting for Payment? Contact Our Experienced Boca Raton Construction Litigation Lawyer
A pay-when-paid clause does not mean a general contractor can hold your money indefinitely. At Neuman Law, P.A., our Boca Raton construction litigation lawyer helps subcontractors throughout South Florida understand their rights and recover what they are owed.
Contact us today to request a consultation. We serve clients in Boca Raton, Palm Beach County, Martin County, Broward County, Miami-Dade County, Monroe County, and Hillsborough County.
Sources:
leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0713/0713.html
leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0713/Sections/0713.06.html
leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0200-0299/0255/Sections/0255.05.html