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Texas Recognizes Subcontractor Pass-through Claims Subcontractors; Claims Administration

Thursday, June 03, 2004 01:12 pm

 
Texas Recognizes Subcontractor Pass-through Claims Subcontractors; Claims Administration

The Texas Supreme Court has recognized "passthrough" claims where a prime contractor pursues a claim against a project owner on behalf of a subcontractor. The Court said this was a difficult question under Texas law, but it would join the majority of jurisdictions that have considered the issue.

The City of Dallas awarded a contract to Interstate Contracting Corp. (ICC) for construction of levees, storm water retainage lakes, and other improvements around a water treatment plant. The contract designated one of the retainage lakes as a borrow site, with the excavated material to be used in the [...]

 
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