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No Chance Of Prompt-pay Recovery In Face Ofadverse Contract Findings

Tuesday, November 04, 2008 04:03 pm

No Chance Of Prompt-pay Recovery In Face Ofadverse Contract Findings

An appellate court affirmed a holding that a subcontractor cannot collect under the Prompt Pay Act if it first breached the subcontract.

Contractor Hutchison Construction, Inc. (HCI) and its subcontractor Billy Smith Enterprises, Inc. (BSE) each sued one another for contract breach. Specifically, BSE claimed that HCI had violated Texas' Prompt Pay Act (the Act) when it failed to pay the subcontractor for more than $45,000 worth of work on a Travis County, Texas public works project. For its part, BSE allegedly failed to properly man the job and stay on schedule. A district court found that neither breach was excused but that BSE [...]

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