Staff Industries, a subcontractor, supplied over a million square feet of Hypalon material to a fish hatchery project and billed $598,001.11. Hallmark Contracting paid only $498,496.66 and withheld $99,504.45 as retainage, claiming Staff should only be paid for material actually used, not delivered. The Texas Court of Appeals ruled that when a unit-price contract is unclear about whether payment is for materials delivered or materials incorporated into the work, the parties' actual intent becomes a factual question that must be decided case-by-case.
Get crystal clear in your contract whether you're paid for materials delivered to the job site or only materials actually incorporated into the finished work—ambiguous contracts will be decided against you in court
Document everything about waste and excess materials; if your contract says 'materials furnished,' you may have a claim for delivered materials even if some becomes waste