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In Texas, what is prompt payment specific to retainage?

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Commercial Flooring contractor in TEXAS. The project took 2 years, retainage was billed almost 1 year ago. What is prompt payment specific to retainage withheld? How does interest work? Additional topic, we have several schools in one district all over 50 days due; and the statement we received FROM THE SCHOOL DISTRICT is they "have 31-45 days to pay the GC"....every law I read says 30. THANK YOU for any clarity. :)

2 replies

Aug 13, 2022

The legal analysis would start with a review of your contract, and then extend to an evaluation of your position on the project, whether the project is privately owned or publicly owned (you mention a school district) as the laws are different, and to any communications which have occurred.

The laws for prompt payment are also different for private owned versus publicly owned projects.

Retain a construction attorney to evaluate your legal situation and to provide advice.

Good luck.

Aug 15, 2022

What does your subcontract say as to the obligation for the general to pay you?

Next, did you give proper timely notices of non-payment to the bond company, the general, and the school system?

If so, then you have 2 years to file suit to recover on the bond.

If not, then you can only sue the upstream contractor for payment and hope that he is solvent and you can collect from the upstream contractor.

YOU have 4 years to file suit to collect.


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