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Attorney2020
Attorney2020, Attorney
Category: Business Law
Satisfied Customers: 2578
Experience:  I am a practicing attorney. I have experience in business law, bankruptcy, real estate law and estates.
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In Texas when a Prime Contractor has multiple contracts with

Customer Question

In Texas when a Prime Contractor has multiple contracts with a Subcontractor on the same project, and the subcontractor performs well on the first subcontract, but does not on the second subcontract, can the Prime use owed funds to the Subcontractor on the first contract to offset against the second subcontract on the same project?
Submitted: 1 year ago.
Category: Business Law
Expert:  Attorney2020 replied 1 year ago.
Do any of the contracts grant the Prime Contractor rights to withhold funds owed based upon failure to perform any of the contracts or just the ability to withhold payments on the specific contract at issue?
Customer: replied 1 year ago.
Yes one does one is a contract for actual construction work 2nd is for project management services on the same project
Expert:  Attorney2020 replied 1 year ago.
So t confirm the contracts are separate and one contract does not grant any rights to withhold funds based upon the failure to perform another contract? Or visca versa?
Customer: replied 1 year ago.
Yes one was for construction work did allow offsets the other was for them to provide Project Management Services to the same project and that included the work they performed under their construction contracts
The owner felt that they failed to perform on the Project Management and back charged us for his Architect having to supplement those Project Management services
Expert:  Attorney2020 replied 1 year ago.
Than per the contract you may withhold funds based upon the failure to perform. The subcontractor will have to remedy the contractual breach in order to demand the full payment.
I hope that helped. Please ask any follow-up questions. Please ask rate my answer so that I may be credited for my time. Otherwise I will receive no credit. Thank you.
Customer: replied 1 year ago.
So is there case law supporting us withholding funds from the contract that does allow deductions for failure to perform under the separate Project Management contract that does not have that in it?
Expert:  Attorney2020 replied 1 year ago.
The contract is your law. The terms of the contract govern.
Please rate my answer so that I may be credited for my time. Otherwise I will receive no credit. Thank you.
Expert:  Attorney2020 replied 1 year ago.
PLEASE RATE MY ANSWER.
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PLEASE RATE MY ANSWER.
Expert:  Attorney2020 replied 1 year ago.
PLEASE RATE MY ANSWER.
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Otherwise I will not receive any credit. Thank you.
Expert:  Attorney2020 replied 1 year ago.
Please rate my answer. Thank you in advance for your cooperation.

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