Texas Property Code Chapter 28

Texas Prompt Payment Act for Contractors

If a Texas construction invoice is past due, Chapter 28 may explain the payment clock. It does not replace the separate Chapter 53 notice and lien deadlines.

35 days

Owner payment

After receipt of an allowed written payment request.

7 days

Downstream payment

After the contractor or subcontractor receives upstream funds.

1.5%/mo

Interest

Applies to overdue Chapter 28 payments.

General information, not legal advice

Prompt-payment rights, lien rights, contract terms, disputes, and project type can turn on facts this guide cannot evaluate. Talk with Texas construction counsel when a payment or lien date matters.

Section 1

What Chapter 28 does

Texas Property Code Chapter 28 is the private-project prompt-payment statute. In plain terms, it sets payment timing after a proper written payment request for work, stored materials, or specially fabricated materials allowed under the contract. It is a payment-law clock, not the same thing as perfecting a mechanics lien.

Section 2

The 35-day owner-to-contractor clock

When an owner receives a written payment request from a contractor for an allowed amount, Chapter 28 generally requires payment by the 35th day after receipt, minus amounts that may be withheld under another statute. Treat the receipt date and the backup attached to the request as critical records.

Section 3

The 7-day downstream payment clock

After a contractor receives owner payment, Chapter 28 generally requires the contractor to pay each subcontractor its proper share of that payment, including attributable interest if any, by the seventh day after receiving the owner payment. A subcontractor that receives payment generally has the same seven-day downstream clock for lower-tier subcontractors.

Section 4

The 1.5% monthly interest rule

Chapter 28 sets interest on an overdue payment at 1.5% each month. Interest is separate from the lien deadline question. It may matter in a payment dispute, but it does not extend a Chapter 53 notice or lien affidavit deadline.

Section 5

How Chapter 28 relates to Chapter 53

A contractor searching because an invoice is past due may be looking at two different issues: prompt payment under Chapter 28 and lien preservation under Chapter 53. Chapter 28 can explain why payment should already have moved. Chapter 53 controls notices, lien affidavit filing, and foreclosure timing. A missed Chapter 53 deadline is not repaired by Chapter 28 interest.

Section 6

What BuilderMaxPro does and does not compute

BuilderMaxPro computes supported Texas Property Code Chapter 53 notice, lien affidavit, foreclosure, and retainage deadline workflows from entered project facts. It does not track Chapter 28 prompt-payment clocks. Use this guide to understand the law, then use the lien deadline calculator to check Chapter 53 dates before assuming time remains.

Chapter 53 check

Do not let prompt-payment anger hide a lien date.

A late payment can feel like the whole problem. In Texas, the Chapter 53 clock may already be running from the month labor or materials were furnished.

Sources and FAQs

The page stays limited to the cited Texas statutes.

What is the Texas Prompt Payment Act?+
It is Texas Property Code Chapter 28, a private-project payment statute that sets timing for certain construction payments after a proper written payment request.
How fast must a Texas owner pay a contractor?+
Chapter 28 generally requires the owner to pay an allowed written payment request by the 35th day after receiving it, minus amounts that may be withheld as authorized by statute.
How fast must a Texas contractor pay a subcontractor?+
After receiving owner payment, a contractor generally must pay each subcontractor its proper share by the seventh day after receiving that payment. The same seven-day downstream rule generally applies when a subcontractor receives payment for lower tiers.
Does BuilderMaxPro track Texas Prompt Payment Act deadlines?+
No. BuilderMaxPro computes supported Chapter 53 lien and notice deadline workflows. It does not track Chapter 28 prompt-payment clocks.