How long does a prime contractor have to pay a subcontractor in Texas?

Under Tex. Gov’t Code §§ 2251.022, 2251.025, a prime contractor on a Texas public project must pay its subcontractors within 10 calendar days of receiving payment.

What interest is owed on a late subcontractor payment in Texas?

8.5% per year, under Tex. Gov’t Code §§ 2251.022, 2251.025. Exceptions apply.

DueVault · Texas · public projects

Texas prompt payment interest calculator

On a Texas public project, a prime contractor must pay its subcontractors within 10 calendar days of being paid. Miss that and interest runs at 8.5% per year — under Tex. Gov’t Code §§ 2251.022, 2251.025.

State (public projects)

Payment you were owed

Date the prime was paid

Date you were paidStill unpaid

The rule in Texas

Agency to prime contractor: 31 days after receipt of the goods/services or the invoice, whichever is later.
Prime contractor to subcontractor: 10 calendar days after the prime is paid.
Interest when that is missed: 8.5% per year

Exceptions worth knowing before you rely on a number

PUBLIC work only. Texas private construction runs under a different chapter at 1.5% per month.
8.50% is the published rate for FY2026 (1 Sep 2025 – 31 Aug 2026). A delay outside that window uses a different rate.
Interest runs from the 11th day — the share is overdue the day after the 10-day deadline.

Statute read 2026-08-28 from the published text. DueVault is not a law firm and this is not legal advice. Public construction only.