• A subcontractor or materialman is not bound to any provision in the prime contract between prime contractor and owner that bars any lien from being asserted or attached to the owner’s property.
• Although the subcontractor or materialman may contractually waive its lien rights in its contract with the prime contractor or owner.
• It is not settled in Kentucky whether pay-if-paid clauses impliedly waive lien rights. KRS 376.070 does appear to allow written waivers of lien rights without any explicit limitations of circumstances under which such waivers can be made.
• "Paid if Paid" is enforced if explicit.
• "Pay when Paid" suggests time for payment.
• Pay-when-paid clause in the subcontract or purchase order does not create a condition precedent to payment.

Retainage Provisions

Public & Private

• Until 50 percent of the contract is complete, the maximum rate of retainage is 10 percent.
  When more than 50 percent of the project is complete, the rate of retainage shall reduce to 5
  percent. KY. REV. STAT. ANN. §§ 371.410(1). When the work is substantially complete, the
  contractor may withhold 200 percent of the estimated cost of the balance of any contractor's or
  subcontractor's contractually obligated, yet incomplete, work. KY. REV. STAT. ANN. §§
  371.410(2). See also KY. REV. STAT. ANN. §§ 176.090 et. seq.