All Seasons hired Red Dot to build a metal building but withheld the final payment over a $5,000 dispute about construction delays and quality. The trial court ordered All Seasons to pay Red Dot $143,800 plus interest, but disagreed on the interest rate. The appeals court ruled that the contract allowed 18% interest (the legal maximum), not 10%, and that interest started accruing when construction finished in October 2001. This matters because it shows courts will enforce maximum legal interest rates in construction contracts and won't let payment disputes excuse full payment obligations.
Include explicit interest rate language in your contracts—if you don't specify a rate, courts may apply the legal maximum (18% in Texas), which could work against you if you're the one owing money
Withholding final payment over a partial dispute can backfire; you'll likely owe the full amount plus interest and attorney's fees, making the dispute far more expensive