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Can I force my contractor to invoice me for work done by a deadline (in Texas)?

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Hello, My renovation contractor (in Austin, TX) who did some work on my properties to fix storm-related damage is taking his own sweet time to invoice me even after the work is done and the property has been returned to full use. While I find this puzzling that he doesn't want to be paid (seemingly), I am worried that my insurance company will not reimburse me for the work if the claim is submitted too late. Is there a deadline in Texas by which a contractor is obligated to invoice the client/customer?

5 replies

Jul 23, 2021

Now this is an issue I don't come across often. There is a four year statute of limitations for breach of contract in Texas, meaning if the contractor were to outright forget to invoice you for that period, he would not have a claim for the money he is rightfully owed. Aside from that limitation, he could theoretically take his time in invoicing you. I understand your concerns with your insurer. And even moreso, I have concerns regarding whether the subcontractors were paid, as those subs can also place liens on your property. 

Obviously, continue to follow up with your contractor. If the contract does not state otherwise, you can also contact any subcontractors directly (if you know who they are) to confirm payment status. 

Regarding insurance, the cheapest and easiest move is to simply call up your adjuster and let them know what's going on. If they come to a conclusion or tell you that you have a certain period of time to close out the claim, make sure to get that in writing. However, I would not expect that your insurer would be overly concerned that they get to hand onto their money for a little while longer. 

Very best,

Ben House

281-762-1377

ben@houseperron.com

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Jul 24, 2021

There is no real deadline date for a contractor to submit an invoice (other than the 4-year statute of limitations for debt). But you probably have an estimate or proposal from the contractor. So, you may consider writing to the contractor by certified mail, and requesting an invoice, and if you do not receive one within say a week you will issue a check for full and final payment in the amount of the estimate or proposal. 

If you have to do that, make sure that you write "Full & final payment for all work" in the memo area of the check and also above the endorsement area on the back of the check.

If need be, you can send your insurer a copy of the estimate/proposal with your check to comply with your insurance claims submission process.

Good luck.

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Jul 25, 2021
Thanks to both you gentlemen for your responses. I will do as both of you suggest.
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Jul 26, 2021
Basically unless you have an agreement otherwise you cannot force a creditor to send an invoice within any particular time. One one hand, if the invoice is not sent within four years (yes a long time) then the creditor is beyond the statute of limitations and cannot successfully sue you if after four years you refuse to pay. On the other hand, if the lateness in getting an invoice jeopardizes your insurance claim, you have a right to demand the invoice and to notify the contractor that the contractor's lack of responsiveness could make the contractor liable for damages.
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Mar 14, 2022
Your insurance should have sent you a LOSS statement for the approved claim. On that loss statement it will tell you how long you have from the date of inception(or date of loss) whatever date they decide, how long you have from that date to send in the final invoice for your replacement cost coverage. This is how you get reimbursed with the depreciation check as well as any extra charges if approved by your insurance. Claims can take months, I’ve even seen some take years, but this is negotiating approval and amount. Once they send a first check, you have a specific amount of time to supplement the claim(ask for more money with details of why they need to send more money), and finally the amount of time you have to file for your replacement cost coverage A.K.A. Proof the damages were repaired(photos), proof your deductible was paid if deductible is required for your claim(if so a cancelled check, or I like to screenshot where the amount posted in my business checking account), and a final invoice amount. Also yes make sure if there were subcontractors involved that they were paid. There could be some miscommunication here, maybe he changed jobs, had a sick child... you never know what someone’s going through. This is very unusual though, completed the work but never sent final invoice. Oh and look through what you signed, I’ve never had this happen but if he was given permission to handle your claim he may have invoiced your insurance and they sent a check to him. This is highly unlikely though especially if you have a Morgage. “ _______Insurance Company appreciates you providing us with the documentation supporting the completion of the repairs on your above referenced claim. A check in the amount of $ 7,891.72 is enclosed. This amount represents payment for the difference between the actual cash value (ACV) of your previous initial settlement payment received and the documented cost of your completed repairs. It also includes payment for the documented cost of the additional warranted repairs needed to return your property to pre-loss condition. Property Damage Estimate (Coverage A): Less Deductible: Less Amount of Previous Payment: Amount of Recoverable Depreciation: $20,771.52 $6,740 $6,139.80 $7,891.72 If you should have any additional questions or concerns, please contact me”
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