Texas law puts burden of payment on general contractor

11/5/2007 | American City Business Journals

A new law in Texas has subcontractors cheering, but general contractors are not as thrilled. Under the law, if a project owner defaults, the general contractor is responsible for paying all subcontractors, or if payment is withheld due to a construction-related problem, all subcontractors who are not directly responsible for the problem must still be paid.

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