If your subcontract contains a termination for convenience clause, the general contractor isn’t held to the same standard and can walk away from their obligations to you at any time.
The Termination for Convenience Clause
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Why Negotiate Your Commercial Subcontract
TCLF Owner and Managing Partner Karalynn Cromeens answers the question "Why should you negotiate your commercial subcontract?" I can remember the first time a read a commercial subcontract as a baby attorney, I thought it was better off to burn it and start from...
Avoiding the Litigation Land Mine
Not understanding a contract that you sign is extremely dangerous. A legal land mine awaits you if you sign a contract without reading and understanding what you are signing. The best way to prevent a lawsuit is to understand all the terms of your contract—in plain language.
Payment of Construction Subcontractors – Chapter 56 of the Texas Business & Commerce Code
A “Pay-when-Paid” clause is not covered under Chapter 56, as Chapter 56 “does not affect provisions that affect the timing of a payment…if the payment is to be made within a reasonable period.” It merely creates a future event as a convenient time for payment; but still requires the general contractor to pay the subcontractor. In other words, in most cases a “Pay-when-Paid” clause is enforceable.