In general, a personal guaranty makes an individual or individuals liable for an entity’s debts or obligations.  A personal guaranty which guarantees a general contractor’s obligations to pay a subcontractor is rarely given, but it is common for the principal(s) of a subcontractor with unestablished credit to personally guarantee the debts and obligations of the

Prompt Pay Acts deter late payment by general contractors (and owners) by giving subcontractors and suppliers rights in the event the general contractor does not timely pay.  These rights generally include interest, attorney fees, and the right to suspend performance.

 Texas Private Prompt Pay Act

The Texas Private Prompt Pay Act requires the owner to

Nonpayment is the biggest threat to most subcontractors’ and suppliers’ bottom lines.  Nonpayment frequently occurs in the construction and oil and gas industries because most goods and services are sold on credit.  C.O.D. sales are uncommon and payment upfront is almost unheard of.  Because of this practice, nonpayment is one of the most common legal