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Contractors, property owners and prompt payment

On Behalf of | Aug 2, 2022 | Firm News

As a contractor, you likely have a number of different challenges to work through from time to time, and some projects become especially difficult. If you currently face difficulties due to nonpayment, it is pivotal to understand your options and take a firm stand for your rights.

In fact, Texas law addresses contractors and subcontractors receiving payments in a timely manner, and you need to have a clear understanding of what to do if a property owner has failed to pay you.

How long do owners have to pay contractors?

According to the Texas Constitution and Statutes, owners have to pay contractors within 35 days after receiving a payment request for an allowable amount in accordance with the contract, so long as the contractor performed work properly. Likewise, contractors must pay subcontractors for their work within seven days after receiving payment from the owner.

It is also important to note that interest can accrue for past due payments.

How can you address nonpayment as a contractor?

If an owner has failed to pay you, it is crucial to go over your options. For example, you can take an owner to court if they have not paid you in accordance with your rights. Additionally, you could have the right to suspend additional work, depending on the details of the situation.

When owners fail to pay contractors in time, it can generate strong emotions and serious financial challenges. This is often very stressful, and discussing your concerns with the property owner could help. However, you need to swiftly review your rights if a property owner is not paying you for work performed.