RFI Blog

RFI Blog

Legal Insights and Best Practices for
Texas Construction Professionals & Government Contractors

Category Archives: Payment

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Sham Contracts and the Constitutional Mechanic’s Lien

Posted in Mechanic's Liens, Owners, Payment, Subcontractors
Compared to prime (general) contractors, it is much more difficult for subcontractors to perfect lien and bond claims on private projects.  Subcontractors must give timely notice of non-payment to the owner.  If the subcontractor claimant does not have an agreement with the prime contractor, notice must also be given to the prime contractor.  Failure to… Continue Reading

Hell Hath No Fury Like a County Clerk Scorned

Posted in Best Practices, General Contractors, Mechanic's Liens, Payment, Subcontractors
  After struggling to cobble together your mechanic’s lien affidavit, you’ve driven 150 miles to reach the county clerk’s office before close of business. Today is the filing deadline.  No worries, you made it!! But now you stand toe-to-toe and face-to-face with a clerk that refuses to record your claim.  WHAT NOW??? More often than… Continue Reading

Criminals in the Construction Industry – Texas’ Trust Fund Statute

Posted in Best Practices, General Contractors, Owners, Payment, Subcontractors
Do you know any criminals?  If you have worked in the construction industry for very long then the likely answer is, “Yes”!  I’m not talking about folks that you believe are cheats, scoundrels and liars.  Nope.  Instead, I’m talking about contractors, subcontractors and owners that misapply funds for construction projects received for the benefit of those… Continue Reading

When Owners Withhold Payment – Enforceability of Contingent Payment Clauses in Texas

Posted in Best Practices, Contract Negotiation, Payment
Who bears the risk when an owner refuses to pay the general contractor or experiences financial failure?  More than likely, the subcontractors whose agreements include a contingent payment clause.  Two types of payment clauses exist and both are enforceable.  “Pay-when-Paid” clauses and “Pay-if-Paid.”  Pay-when-paid clauses allow the general contractor to wait a reasonable time for… Continue Reading