• Under the North Carolina lien statutes, neither a contractor nor a subcontractor/supplier can legally waive future lien rights in anticipation of and in consideration for the awarding of any contract. G.S. 44A-12(f).
• "Paid if Paid" is not enforceable in North Carolina
• "Pay when Paid" is not enforceable in North Carolina.
• Pay-when-paid clause in the subcontract or purchase order does not create a condition precedent to payment.

Retainage Provisions

Public

• No retainage may be withheld on contracts that are less than $100,000. N.C. GEN. STAT. §143-134.1(b1). For contracts exceeding $100,000, the maximum rate of retainage is 5 percent of any periodic payment. When the project is 50 percent complete, as determined by the statute, no retainage can be withheld if the work is deemed "satisfactory." If performance is "unsatisfactory," retainage may be withheld at a maximum rate of 5 percent. N.C. GEN. STAT.  §143-134.1(b1)(2). When the project is 50 percent complete, early finishing trades, which must be identified in the bid specifications, may seek 100 percent retainage payment contingent upon the approval of the project architect or engineer. N.C. GEN. STAT. §143-134.1. For provisions concerning the Department of Transportation see N.C. GEN. STAT. §136-28.