Pavecon, Inc. v. R-Com, Inc.
159 S.W.3d 219 | Court of Appeals of Texas | 2005
What This Case Means for Subcontractors
Pavecon, a concrete subcontractor, performed over $85,000 in work on a project covered by a payment bond issued by IFIC. When R-Com failed to pay, Pavecon didn't notify the surety until April 2002—nearly 9 months after completing work in August 2001. Texas law required written notice within 15 days of the third month following services. The court ruled that Pavecon's late notice barred recovery on the bond, even though IFIC had failed to properly file the bond itself. This means subcontractors lose payment bond rights if they miss the notice deadline, regardless of other parties' failures.
Key Takeaways
- •You must give written notice to the surety by the 15th day of the third month after you complete work—missing this deadline kills your bond claim, period.
- •Don't wait for the general contractor to provide bond information. Actively request bond details immediately when you start work, and track your own notice deadline.
- •A surety's own failure to file the bond correctly does not excuse your notice requirement—you still must comply with statutory deadlines or lose your claim.
Pavecon was required to give IFIC written notice by the 15th day of the third month following services.
Frequently Asked Question
What happens if I miss the deadline to notify the surety about unpaid work on a payment bond?
You lose your right to recover from the payment bond entirely. Texas law requires written notice to the surety by the 15th day of the third month following your work. Missing this deadline bars your claim, even if the surety or general contractor failed to follow other rules. Start tracking this deadline from your first day on the job.
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