Ramex Construction terminated Tamcon Services as a subcontractor on a Houston sewer project, claiming poor performance. Tamcon argued Ramex withheld payment and refused schedule extensions, causing the delays. The jury ruled in Tamcon's favor, but the Texas Court of Appeals reversed because the jury's decision was based on a legal defense (waiver) that Ramex never formally raised in its pleadings. The court also faulted the trial judge for blocking the owner's testimony about the company's lost value. The case gets a new trial.
Make sure your contractor's written response to your claims specifically addresses every legal defense they plan to use—vague denials won't cut it in court.
Document all payment delays and refusals in writing, with dates and amounts. This evidence directly supports claims that cash flow problems caused your performance issues.