Texas prompt payment

Who and what this applies to

Private real-property improvement payments under Property Code Chapter 28 and governmental payments under Government Code Chapter 2251.

Thresholds and scope

Private and governmental payment clocks differ.

The rules

• Property Code 28.002 ordinarily requires the owner to pay an allowed written request for proper work or suitably stored/specially fabricated materials within 35 days; contractors and subcontractors pass the attributable payment to the next tier within seven days after receipt. Source
• Sections 28.006 and 28.008 qualify the owner deadline: a written single-family residential contract may set a date before the 61st day; a qualifying lender failure changes the deadline to five days after the owner receives the loan proceeds. Source
• Sections 28.003-.004 allow withholding for a good-faith dispute up to 110% of the disputed difference for detached single-family, duplex, triplex, or quadruplex work, and up to 100% for other real property; required unpaid amounts bear 1.5% interest monthly beginning after the due date. Source
• Government Code 2251.021 makes covered governmental payments overdue on day 31 after the latest applicable goods receipt, service completion, or invoice receipt. A political subdivision whose governing body meets monthly or less often has a day-46 overdue date. Source
• Government Code 2251.022-.023 require vendors and subcontractors to pass the appropriate share of government payments within ten days after receipt; that share becomes overdue on day 11. Source

Deadlines

Private downstream: seven days; governmental downstream: ten days. Statutory dispute and scope exceptions apply.

Primary sources

• PR.28.htm
• GV.2251.htm

Sources reviewed 2026-09-30. This guide covers the projects and rules stated above.

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