Menu
Home>Levelset Community>Legal Help>Final CO and Retainage hold up

Final CO and Retainage hold up

TexasPay When Paid

I am a general manager of an electrical subcontractor who signed a paid when paid contract. The project was completed and the GC is saying that they can only submit one last change order to the owner and they need to have all other subcontractors have their proposed change orders completed in order to submit. After three months I have followed up with email, phone calls and they have been non responsive. They are holding up us getting paid for our last CO and our retainage on the project which is 10% on a million dollar project. We think their retainage is only 5%. What can we do at this point to get paid?

1 reply

Apr 21, 2020
I have several follow up questions which I need answered to determine what help I can provide, but generally speaking on a private construction project, a first tier subcontractor must send notice to the owner by the 15th day of the third month following EACH month in which labor was performed and which was not paid for. Secondly, a lien affidavit must be filed by the 15th day of the fourth month after the last day of the month in which work was performed. However, the lien to recover retainage must be filed within 30 days of the project's overall completion. So based upon what you're telling me, you may need to move very quickly in sending the appropriate notices and/or filing you lien. A paid when paid clause doesn't affect the requirements the law places on your company to send the requisite notices and make the necessary lien filing. Timing is critical. You can certainly contact me directly if you have any questions. Ben House 281-762-1377 ben@houseperron.com
0 people found this helpful
Helpful