Tennessee Award Agreement
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FAQ
With a pay-when-paid clause, the contractor must pay the subcontractor, and the clause only addresses the timing of payment. While some states have prohibited the pay-if-paid clauses, Pennsylvania courts generally enforce them.
What pay-when-paid means. In layman's terms, a ?pay-when-paid? clause is the prime contractor informing the subcontractor that they will pay them after they receive payment from their customer. That is usually the property owner, but can also be the developer.
The Tennessee Student Assistance Award (TSAA) provides non-repayable financial assistance to financially-needy undergraduate students who are residents of Tennessee.
Pay-when-Paid Example 1 The Subcontractor shall be paid within ten (10) business days after receipt of payment from the Owner by the General Contractor for Subcontract work.
Owner to Prime Contractor (Private): 30 days after receipt of invoice. Prime Contractor to Subcontractor (Private): 30 days after receipt of payment from owner. Interest/Penalties (Private): Interest at statutory rate unless otherwise agreed by contract.
In contrast, a pay-when-paid provision deals only with timing. The contractor must pay the subcontractor upon receipt of payment from the owner; however, if the owner fails to pay, the contractor must still pay the subcontractor within a reasonable time.
Pay-If-Paid Permissible: Yes. Special Notes: Prime contractor shall pay subcontractors their share of any interest received from owner.
