Texas Contractor's Affidavit of Payment to Subs
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FAQ
A general rule of contributory negligence is that a main contractor is not liable for the negligence of its independent subcontractor. There are some exceptions to this rule, including: The main contractor had actual knowledge that the sub-contractor's work had been done in a foreseeably dangerous way and condoned it.
Right to withhold payments The Texas Prompt Payment Act does allow the withholding of payments on public works projects in particular circumstances. The entity, vendors (prime contractors), and subs may withhold payments if there is a bona fide dispute about the goods delivered or services performed.
When Can Contractors Withhold Payment From Subcontractors? The main contractor is able to withhold payment if the work or goods supplied by a subcontractor are deemed unsuitable. Evidence of this should always be provided along with the option to rectify any shortcomings.
The Texas Government Code Chapter 2251 Prompt Payment Act stipulates that payment is due for goods or services 30 days from the date goods/services are received/completed, or a correct invoice is received, whichever is later.
Thus, if a general contractor's subcontract currently requires its subcontractors to indemnify it from any and all claims or disputes arising from general contractor's sole negligence, it will not be enforceable.
Under the Texas Prompt Payment Act, once a general contractor receives payment from an owner, the general contractor has seven (7) days to pay each of its subcontractors the portion of the payment attributable to the subcontractors' work performed under its contract with the contractor.
Under the Texas Prompt Payment Act, once a general contractor receives payment from an owner, the general contractor has seven (7) days to pay each of its subcontractors the portion of the payment attributable to the subcontractors' work performed under its contract with the contractor.
Generally, under Texas law, an entity that employs an independent contractor does not maintain a duty to ensure that the subcontractor performs its work safely.
No. It depends on the facts, but in this case the general contractor did not retain enough control to be liable. A recent Texas Supreme Court case provides a good example of how Texas courts evaluate general contractor liability to subcontractors and its' employees for on-the-job personal injuries.
AIA Document G70621221994 requires the contractor to list any indebtedness or known claims in connection with the construction contract that have not been paid or otherwise satisfied.