Legal Question in Business Law in Texas

Subcontractor's Rights

Nat'l entity contracted with independent co's to offer inspection certification services. I work as a subcontractor for one co. I go out and get my own projects but present proposals on his letterhead since he is sanctioned by the nat'l program. I do all the work but add a couple of hours for his time to review my completed submission packet before it goes to the nat'l for certification. Since proposal have his company name, client makes checks to him and he is supposed to pay me 70% and he keeps 30% of all client payments for my work. He has been providing my general/professional insurance out of his 30%. Now he wants me to pay my own insurance (although I did not include this expense in my client proposals), keep my work files at his office, and sign an agreement not to do work for any other co. sanctioned by the nat'l program. Clients pay in stages based on % of work complete. Some projects will last 2 more years. I have been having major problems getting paid from him for several months. Can I take the balance of work to be done on ''my'' projects and work for another co. or are the projects ''his'' because the proposals and invoices are in his companies name? Should I contact the nat'l company and fill them in?


Asked on 1/25/08, 10:59 am

1 Answer from Attorneys
Don Galvez The Law Office of Don Sebastian Galvez, P.C.

Re: Subcontractor's Rights

You absolutely have rights to payment but what rights you have are not completely clear based on your explanation. Did you have a written agreement for services, work and/or pay share? Are you providing inspection services for residential or commercial construction projects? There's still many questions a lawyer would need to completely answer your questions but you would have rights to pay under contract, labor code, property code and/or common law based on quantum meruit (fancy word basically meaning you have the right to pay for work performed even if there is no written contract). My advice is to seek counsel from an attorney who handles these matters (like me). I hope this helps.

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Answered on 1/25/08, 11:27 am


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