Prompt Payment Requirements for Design-Bid-Build Highway Contracts

Resources for nonpayment

TxDOT Standard Specifications Article 9.9, “Payment Provisions for Subcontractors,” requires ALL prime contractors to pay each subcontractor for satisfactory performance under the subcontract no later than 10 days from receipt of each payment the prime contractor receives from TxDOT.

If you have not received payment promptly, consider the following.

1. Verify the prime contractor has received payment for work performed by reviewing the CIS Estimate Reports. The Estimate Package Review tutorial provides guidance on where to find relevant information in the monthly estimate reports.
2. TxDOT requires contractors to file a payment bond on all projects exceeding $25,000. This payment bond is the sole financial protection of all subcontractors supplying labor and/or materials. Contact the prime contractor and its payment bond surety to attempt to resolve the issue. Texas Government Code §2253.041 provides the notice requirements.
3. If the issue is not resolved after contacting the prime contractor and surety, file a written complaint with the appropriate Area Engineer, as listed on the Estimate Package. Include the following information in your complaint.
   • Written evidence that you have contacted the prime contractor and its payment bond surety in an attempt to resolve the issue
   • Specifics regarding the subcontract language, items of work in question, and your attempts to obtain payment from the prime contractor
4. TxDOT will notify the prime contractor that a nonpayment complaint has been made, forward your letter of complaint, and remind the prime contractor of their obligations under the contract. The prime contractor will be given the opportunity to respond to the allegation(s) and provide documentation demonstrating compliance.
5. If the prime contractor fails to comply with the contract payment requirements, TxDOT may initiate administrative action to bring the contract into compliance. However, if the Area Engineer determines that a bona fide dispute exists, TxDOT will advise the prime contractor of their responsibility to work with the subcontractor to resolve the dispute.

Disadvantaged Business Enterprise (DBE) resources

DBE subcontractors may contact the Civil Rights Division for additional assistance.