"Pay-If-Paid" Clauses Unenforceable per S.C. Code Ann. § 29-6-230
This entry was posted on 1/12/2007 8:33 PM and is filed under South Carolina Construction Law,Collection,Contract Law,Statute Summary.
In South Carolina, "pay-if-paid" clauses between subcontractors and contractors are unenforceable. S.C. Code Ann. § 29-6-230 states that once a subcontractor has performed to the level required by the contract, he is then entitled to payment from the contractor with whom he has a contract. Payment is due to the subcontractor regardless of the payment status between the contractor and the owner, suppliers, or other subcontractors. Any agreement stating otherwise is unenforceable.
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