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TexasPrompt Payment

I have a pay app that was due in June 20 for May work. The GC has been paid for May's work, but said he will not pay us until the end of July. The Texas Prompt Pay Act states that a GC has 10days to pay subs after he has received payment. What can I do to get payment since he is not following this? Also, on sending monthly notices, do I send a notice for May's work that has not been paid in July? I know that we have 3month time line, but can I send it before then?

2 replies

Jul 14, 2020

In answer to your last question, yes, you can send notice letters early. All the law requires is that the notice letters are sent PRIOR TO the deadline. If you issue "3rd month" fund trapping notice letter on or before July 15th, you can "capture" work (for the purposes of your eventual lien) completed as early as April 1st. You're lien would then need to be FILED by the 15th of August. 

Now, I've made a lot of assumptions here in telling you these dates which may or may not be correct, so I'm just trying to give you an idea of what you're looking at there. Don't rely on these dates until you've spoken with an expert/service in this area IN DETAIL. Long story short, issue notice letters in correct for early and often and get your lien filed on time. This provides a very strong basis for you to get paid without needing to file suit.

Feel free to reach me directly if you would like to discuss your claim in greater detail.

Ben House

281-762-1377

ben@houseperron.com

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