What are the prompt payment rules for construction in Texas?
Last reviewed July 5, 2026
In Texas, prompt payment laws require general contractors to pay subcontractors within 10 days of receiving payment from the owner. If a contractor fails to pay on time, they can face interest charges. Always check the contract for any specific payment terms.
Key points
- General contractors must pay subs within 10 days of payment from the owner.
- Interest can apply to late payments.
- Contract terms may have different timelines.
Texas law supports timely payments to subcontractors. If a payment is delayed, the contractor is responsible for any interest that builds up. Refer to the Texas prompt payment act and your contract for specific details.
How Alloovium helps
Alloovium helps track payment deadlines and compliance with Texas prompt payment rules.
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General information for US construction professionals — not legal advice. Lien deadlines, retainage caps and notice rules vary by state; verify with the state statute or a construction attorney.