Texas Property Code - Section 28.009. Right To Suspend Work
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§ 28.009. RIGHT TO SUSPEND WORK. (a) If an owner fails to
pay the contractor the undisputed amount within the time limits
provided by this chapter, the contractor or any subcontractor may
suspend contractually required performance the 10th day after the
date the contractor or subcontractor gives the owner and the
owner's lender written notice:
(1) informing the owner and lender that payment has
not been received; and
(2) stating the intent of the contractor or
subcontractor to suspend performance for nonpayment.
(b) For purposes of Subsection (a), the contractor or
subcontractor must give the owner's lender the written notice only
if:
(1) the owner has obtained a loan intended to pay for
all or part of the construction project;
(2) the lender has remitted funds, including
acquisition funds, for construction purposes;
(3) the loan obtained:
(A) is evidenced by a promissory note secured by
a deed of trust recorded in the real property records of the county
in which the real property that is the subject of the contract is
located; and
(B) is not only for the acquisition of personal
property or secured only by a security instrument;
(4) the owner or lender, at the lender's option:
(A) securely posts not later than the 10th day
after the date construction commences a sign on the project site in
a prominent place accessible to each contractor, subcontractor, and
supplier that states the lender's name, address, and the person to
whom any notice should be sent; and
(B) maintains the sign during the pendency of the
construction project;
(5) not later than the 10th day after the date
construction commences, the owner or lender, at the lender's
option, provides a written copy of the notice prescribed by
Subdivision (4) to the contractor and any subcontractor or supplier
identified by the contractor by depositing the notice properly
addressed in the United States mail, first class, postage paid; and
(6) not later than the 10th day after the date a
subcontractor or supplier performs labor or furnishes materials or
equipment for the construction project, the owner, contractor, or
subcontractor provides a written copy of the notice prescribed by
Subdivision (4) to the subcontractor or supplier.
(c) A contractor or subcontractor who suspends performance
as provided by this section is not:
(1) required to supply further labor, services, or
materials until the person is paid the amount provided by this
chapter, plus costs for demobilization and remobilization; or
(2) responsible for damages resulting from suspending
work if the contractor or subcontractor has not been notified in
writing before suspending performance that payment has been made or
that a good faith dispute for payment exists.
(d) A notification that a good faith dispute for payment
exists provided under Subsection (c) must include a list of
specific reasons for nonpayment. If a reason specified includes
labor, services, or materials provided by a subcontractor that are
not provided in compliance with the contract, the subcontractor is
entitled to a reasonable opportunity to:
(1) cure the listed items; or
(2) offer a reasonable amount to compensate for listed
items that cannot be promptly cured.
(e) This section does not apply to:
(1) a contract for the construction of or improvements
to a detached single-family residence, duplex, triplex, or
quadruplex; or
(2) a contract to improve real property for a
governmental entity.
(f) The rights and remedies provided by this section are in
addition to rights and remedies provided by this chapter or other
law.
Added by Acts 1999, 76th Leg., ch. 805, § 4, eff. Sept. 1, 1999.
Section: 28.002 28.003 28.004 28.005 28.006 28.007 28.008 28.009 28.010 29.001 29.002 29.003 29.0035 29.004 41.001
Last modified: August 11, 2007
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