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Can a Contractor withhold payment for not having a signed contract from a subcontractor?

TexasConstruction ContractPay ApplicationsPayment Disputes

Can a Contractor withhold payment for not having a signed contract from a subcontractor? Example: If a sub ordered materials for a project getting ready to begin and bills the Contractor for them, can the Contractor withhold payment if they have yet to receive their contract back signed?

1 reply

May 11, 2020
I have several followup questions to your question that I would need to know to answer this for you. What I can say, is that there are certainly situations similar to what you have described where the contractor would be liable for payment. Please don't hesitate to contact my office directly if you would like to discuss this situation in greater detail.
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