Owner to Prime Contractor (Private): 35 days after invoice.
Prime Contractor to Subcontractor (Private): 7 days after receipt of payment from owner.
Interest/Penalties (Private): Interest at a rate of 1.5% per month. Attorneys’ fees awarded in court’s discretion.
Owner to Prime Contractor (Public): 30 days after invoice or receipt of goods or services, whichever is later
Prime Contractor to Subcontractor (Public): 10 days after receipt of payment from owner.
Interest/Penalties (Public): Interest at prime rate plus 1%. Attorneys’ fees awarded to the prevailing party.
Pay-If-Paid Permissible: Yes, but clause is not a defense to a lien claim.
Disclaimer: This information was published on July 1, 2020. Please contact Josh Levy, Eric Meier or Samantha Schacht for modifications made by Texas since that date. Visit our 50-State Construction Law Map for information on other states.