Texas Property Code - Section 28.002. Prompt Pay Required
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§ 28.002. PROMPT PAY REQUIRED. (a) If an owner or a
person authorized to act on behalf of the owner receives a written
payment request from a contractor for an amount that is allowed to
the contractor under the contract for properly performed work or
suitably stored or specially fabricated materials, the owner shall
pay the amount to the contractor, less any amount withheld as
authorized by statute, not later than the 35th day after the date
the owner receives the request.
(b) A contractor who receives a payment under Subsection (a)
or otherwise from an owner in connection with a contract to improve
real property shall pay each of its subcontractors the portion of
the owner's payment, including interest, if any, that is
attributable to work properly performed or materials suitably
stored or specially fabricated as provided under the contract by
that subcontractor, to the extent of that subcontractor's interest
in the owner's payment. The payment required by this subsection
must be made not later than the seventh day after the date the
contractor receives the owner's payment.
(c) A subcontractor who receives a payment under Subsection
(b) or otherwise from a contractor in connection with a contract to
improve real property shall pay each of its subcontractors the
portion of the payment, including interest, if any, that is
attributable to work properly performed or materials suitably
stored or specially fabricated as provided under the contract by
that subcontractor, to the extent of that subcontractor's interest
in the payment. The payment required by this subsection must be
made not later than the seventh day after the date the subcontractor
receives the contractor's payment.
Added by Acts 1993, 73rd Leg., ch. 479, § 1, eff. Sept. 1, 1993.
Amended by Acts 1999, 76th Leg., ch. 805, § 1, eff. Sept. 1,
1999.
Section: 27.004 27.0041 27.0042 27.005 27.006 27.007 28.001 28.002 28.003 28.004 28.005 28.006 28.007 28.008 28.009
Last modified: August 11, 2007
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