Eco Built, a subcontractor, breached a construction contract on the Hilton Austin project and argued it was discharged from payment obligations because Landmark (the general contractor) also breached first. The Texas Court of Appeals rejected this argument, ruling that even when one party materially breaches, the other party cannot simply stop paying for work already performed under the contract. The court held that both parties can have valid damage claims—the breaching party doesn't get a free pass on payment just because the other side also breached.
If you breach a contract, you still owe payment for work the other party completed before the breach occurred—you can't use their breach as an excuse to withhold payment for prior performance.
Continuing to work or treat a contract as active after the other party breaches means you've likely waived your right to terminate and walk away without further obligations.
Document all work completed and invoices carefully, because courts will enforce payment obligations for completed work even in disputes where both sides have breached.