In order to answer the question in the title, you have to understand accrual of indebtedness as it is used in the Texas Property Code.  This is basically the moment that you are owed the money. This moment changes depending on a number of different variables including whether you’re a subcontractor, material supplier, or general…

This question is asked all the time. When is an owner justified in withholding payment? The answer depends on many variables but typically on commercial jobs you’ve got an AIA 201, the Prompt Pay Act, and years of precedent that offer guidance.  

Too many contractors are blowing money on preventable litigation and claims. Bond claims, lien claims, defect allegations for warranty work etc. Much of this avoidable with some upfront work.

When working on public jobs, general contractors can quickly find themselves in a bind. This is because if a subcontractor files a bond claim, whether the claim has merit or not, the bonding company (surety) pressures the contractor to resolve the claim. If the contractor delays, the contractor will have to indemnify the surety.  

There are so many landmines buried in these agreements that you MUST review them when you’re getting ready to start a project. I understand that for some smaller contractors you don’t have a great deal of negotiating power to change the agreement but this does not mean that you should not make sure that you…

When it comes to construction bond claims, the statute of limitations can be tricky. Watch to learn more.  

It happens all the time. You hire a subcontractor, they perform work and its less than stellar, to say the least. Depending on your subcontract agreement you’re left with a few choices. First, you can pay the sub for the work, terminate them, and get a new subcontractor to correct the work. Second, you can…

Nothing is more frustrating than doing work and not getting paid. However, you have to be careful when abandoning a project because you haven’t been paid. The contract and on public projects, the relevant statutes give guidance as to the procedure for suspending performance. Watch the video to learn more.

Here are some basics that you need to understand about the Texas Construction Trust Fund Act.

So you missed your lien deadline and you’re a general contractor. Well, as long as the property has no been sold, you can still protect your interest.  You should file your lien as quickly as possible.

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