Episode
Stop Working When They Don't Pay
- Podcast
- Construction Legal Made Easy
- Published
- Jun 8, 2026
- Duration seconds
- 347
- Processing state
not_requested- Canonical source
- https://b3b9db25-16d7-4003-8965-8d5253a4e3df.libsyn.com/stop-working-when-they-dont-pay
Actions
POST https://stenobird.com/v1/public/podcasts/construction-legal-made-easy-6524910/episodes/stop-working-when-they-don-t-pay/transcription-requests
Idempotently request low-priority transcript generation for this episode.GET https://stenobird.com/podcast/construction-legal-made-easy-6524910/stop-working-when-they-don-t-pay.md
Read the agent-friendly Markdown representation of this episode resource.
Summary
Prompt payment laws can be powerful leverage. Karalynn explains Texas prompt pay timelines, interest penalties, when generals and owners must pay subs and suppliers, and how subs can legally stop work when the GC gets paid but keeps your money. Learn more about The Cromeens Law Firm here ! Grab Karalynn's new book Trust Your Gut here . Follow Karalynn Cromeens on Facebook here . Follow Karalynn Cromeens on Instagram here . Follow Karalynn Cromeens on LinkedIn here . Watch the show on YouTube here . Key Takeaways 1. Prompt payment laws set deadlines for generals, subs, and suppliers to pay after receiving funds. 2. These laws allow contractors to charge interest on late payments even without a contract interest clause. 3. In Texas, GCs have seven days to pay subs after owner payment, invoices for materials must be paid in 35 days, and subs can send a 10-day notice and stop work once they confirm the GC was paid. Timestamped Overview 00:10 Topic setup: prompt payment in general and specifically how it works in Texas. 00:30 Explanation that most states have prompt payment laws requiring GCs to pay subs, and subs to pay their subs and suppliers, within set timelines. 01:00 Overview of interest penalties for late payment, and explanation that normally you need a written contract to charge interest, but prompt payment laws give you that right by statute. 01:30 Introduction to Texas Property Code chapter 28 as the prompt payment statute, and explanation that once the GC gets paid by the owner, they have seven days to pay subs before interest can start. 02:00 Explanation that owners or GCs have 35 days to pay material invoices, and interest begins to accrue on day 36 whether or not you send a demand letter. 02:30 Discussion of the 1.5 percent per month, 18 percent per year int…