TapeAndFloat.comPay-when-paid vs. pay-if-paid
By James Grokman, CEO, TapeAndFloat · Updated 2026-10-28
Pay-when-paid and pay-if-paid are subcontract clauses that tie your payment to the GC getting paid by the owner. A pay-when-paid clause is generally read as setting timing. A pay-if-paid clause tries to make the owner's payment a condition of yours. Whether and how either is enforced depends on the state and the exact wording.
Not legal advice. This is a general explanation for contractors across the U.S. Lien and payment rules differ by state and by contract, and they change. Before you act on a lien, waiver or payment clause, talk to a construction attorney in your state.
Why it matters on a drywall job
- These clauses decide who carries the risk if the owner pays late or doesn't pay.
- Reading the payment clause before you sign tells you what to expect on a slow job.
For one state's rules, see the Texas lien guide for subcontractors. It covers Texas only.
Related guides and tools
TapeAndFloat helps drywall and tape-and-float contractors keep up with the office side: bids, change orders, pay apps and follow-ups. Free 60-day pilot. If you stay on, we agree on the price with you up front.
¿Prefiere español? Pago cuando se cobre vs. pago si se cobra.