Assume the same expenditures as Exercise Eight but now the GC holds the subcontractor and major supplier checks

Assume the same expenditures as Exercise Eight but now the GC holds the subcontractor and major supplier checks for 30 days after the GC has been paid by the client on the 10th. Is the GC now in the red or black and by how much? Is a GC-subcontractor ‘pay-when-paid’ contract clause ethical? Is it legal?

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