Are construction contract "pay when paid" clauses enforceable?

Yes, they are... Although somewhat unfair, Florida Courts have enforced these clauses provided the language clearly and unambiguously states that the contractor does not have to pay the subcontractor/supplier until the contractor receives payment from the owner or lender. The key to enforcing these "pay when paid" clauses is that they be clear and unambiguous. Subcontractors and material suppliers should definitely stay away from these types of clauses.

Florida's Transfer Bond Statute Isn't Working

In a nutshell, Florida's Transfer Bond Statute is not working. Florida Statute §713.24, permits an owner whose property is encumbered by a claim of lien to transfer that lien off the property to other security, such as a cash deposit or surety bond. However, problems with Florida’s transfer bond statute have emerged. Meaning, lienors who have provided labor or materials are finding themselves unprotected and exposed. This article explains the purpose of Florida Statute 713.24, the advantages and disadvantages of this statute, the problems and complications that arise when the statute is applied to real/everday actual situations, and the various possible amendments to the current statutory framework that should improve the statute and further its purpose of protecting the lienors, while still benefiting owners.