The private and public prompt pay acts both provide contractors and subcontractors with the right to stop work if an owner or upstream contractor fails to pay an undisputed amount.  With H.B. 3485, the Texas legislature has now extended this right when the contractor or subcontractor is waiting on large dollar value change orders. 

Continue Reading Texas Legislature Expands Suspension Rights Under the Prompt Pay Acts

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