Patriot Contracting failed to pay its subcontractor Kancor on time and in full, violating their subcontract and Texas prompt payment laws. Shelter Products, a supplier, also went unpaid. The court upheld a judgment against Patriot and enforced Travelers' payment bond to cover all unpaid claims. This case shows that contractors cannot delay or withhold payments to subs, and payment bonds will be used to satisfy those claims.
Pay your subcontractors on time and in full—late or partial payments violate Texas prompt payment law and expose you to bond claims and lawsuits.
Payment bonds exist to protect suppliers and subs when the contractor fails to pay; the court will enforce them against the bonding company.
Document all work performed and materials supplied; the court will award damages for unpaid services even if the subcontract has payment disputes.