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. 
Texas prompt pay
Prompt Pay Acts: Preventing Slow Paying
By Joe Virene on
Posted in Liens, Bonds & Collections
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.
The Texas Private Prompt Pay Act requires the owner to…