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I agree that pay-of-paid clauses are unfair to subcontractors, who almost always have a lot more cost invested in the project than a general contractor.
Many states have taken steps to essentially outlaw Pay-If-Paid clauses. In Kansas, a Pay-If-Paid clause is not available as a defense to a payment bond surety.
Good comments. This happens a lot more than you think.
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Aug 11, 2011