Tex. Codes » Property Code · TITLE 4. ACTIONS AND REMEDIES · CHAPTER 28. PROMPT PAYMENT TO CONTRACTORS AND SUBCONTRACTORS
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Tex. Prop. Code § 28.004 (2026)

Interest On Overdue Payment

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Sec. 28.004. INTEREST ON OVERDUE PAYMENT. (a) An unpaid amount required under this chapter begins to accrue interest on the day after the date on which the payment becomes due.

(b) An unpaid amount bears interest at the rate of 1-1/2 percent each month.

(c) Interest on an unpaid amount stops accruing under this section on the earlier of:

(1) the date of delivery;

(2) the date of mailing, if payment is mailed and delivery occurs within three days; or

(3) the date a judgment is entered in an action brought under this chapter.

Added by Acts 1993, 73rd Leg., ch. 479, Sec. 1, eff. Sept. 1, 1993.

Notes of Decisions
Cited in 24 cases (6 in the last 5 years), 1998–2024 · leading case: AMX Enter., L.L.P. v. Master Realty Corp., 283 S.W.3d 506 (Tex. App.—Fort Worth 2009).
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AMX Enter., L.L.P. v. Master Realty Corp., 283 S.W.3d 506 (Tex. App.—Fort Worth 2009). · cites it 2× “” Tex. Prop.Code Ann. § 28.004. Likewise, the statute at issue in Marineau v.”
Alan Gordon, Lauren Gordon, & IBL Constr. & Design, LLC v. Dennis Leasman D/B/A Leasman Contracting, 365 S.W.3d 109 (Tex. App.—Houston [1st Dist.] 2011). · cites it 2× “See Tex. Prop.Code Ann. § 28.004 (West 2000).”
Westcliffe, Inc. v. Bear Creek Constr., Ltd., 105 S.W.3d 286 (Tex. App.—Dallas 2003). “Tex. PROp.Code Ann. § 28.004. We overrule Westcliffe’s first issue and affirm the trial court’s judgment.”
All Seasons Window & Door Mfg., Inc. v. Red Dot Corp., 181 S.W.3d 490 (Tex. App.—Texarkana 2005). “Tex. PROp.Code ANN. § 28.004 (Vernon 2000).”
Walker & Assocs. Surveying, Inc. v. Roberts, 306 S.W.3d 839 (Tex. App.—Texarkana 2010). “” Tex. Prop.Code Ann. § 28.004 (Vernon 2000).”
Nat'l Env't Serv. Co. v. Homeplace Homes, Inc., 961 S.W.2d 632 (Tex. App.—San Antonio 1998). · cites it 2× “See Tex. Prop. Code Ann. § 28.004 (e)(3) (Vernon Supp.”
Mulch Matters, Inc. & Prime Trees, Inc. D/B/A Mulch Matters v. Toro Rojo, D/B/A Action Trucking Co., No. 01-22-00322-CV (Tex. App.—Houston [1st Dist.] Apr. 30, 2024). · cites it 3× “At trial, the parties disputed whether this $110 rate was a 1 TEX. PROP. CODE § 28.004. 2 This subcontract was between ATZ and “Prime Trees Inc.”
Hilary Rochelle v. Travis Servs. Grp., Inc & Travis Co. D/B/A Puroclean Servs., No. 01-23-00004-CV (Tex. App.—Houston [1st Dist.] Aug. 13, 2024). · cites it 3× “See TEX. PROP. CODE § 28.004. In a related sub-issue, Travis alleges that the trial court should have awarded interest through October 7, 2022 (the date of judgment) rather than August 31, 2022.”
Eagleford Recycling Servs., LLC, No. 8:21-bk-05810 (Bankr. M.D. Fla. Aug. 3, 2023). · cites it 2× “! The ultimate ' Tex. Prop. Code § 28.004 (2015) (emphasis added).”
D2 Excavating, Inc. v. Thompson Thrift Constr., Inc., No. 2:16-cv-00538 (S.D. Tex. July 26, 2021). · cites it 2× “186; Tex. Prop. Code § 28.004. TTC challenges any award of prejudgment interest because the demand was “bloated” with the demand for the cost of excess soil removal and it disputed in good faith all or part of the demand.”
AMX Enter., L.L.P., F/K/A AMX Enter., Inc. v. Master Realty Corp., No. 02-07-00239-CV (Tex. App.—Fort Worth Apr. 9, 2009). · cites it 2× “” Tex. Prop. Code Ann. § 28.004 (b), (c). Further, interest under the Act fulfills both of the purposes of prejudgment interest: It compensates a claimant-contractor like AMX for the loss of use of the unpaid money, and it encourages settlement and removes incentives for delay.”
Cox Paving of Texas, Inc./H.O. Salinas & Sons Paving, Inc. v. H.O. Salinas & Sons Paving, Inc./Cox Paving of Texas, Inc., 657 S.W.3d 756 (Tex. App.—El Paso 2022). “See TEX.PROP.CODE ANN. § 28.004 (providing for interest on overdue payment).”
Show all 24 citing cases →
Tex. Prop. Code § 28.004(a): 2 cases
Mulch Matters, Inc. & Prime Trees, Inc. D/B/A Mulch Matters v. Toro Rojo, D/B/A Action Trucking Co., No. 01-22-00322-CV (Tex. App.—Houston [1st Dist.] Apr. 30, 2024). “At trial, the parties disputed whether this $110 rate was a 1 TEX. PROP. CODE § 28.004. 2 This subcontract was between ATZ and “Prime Trees Inc.”
Eagleford Recycling Servs., LLC, No. 8:21-bk-05810 (Bankr. M.D. Fla. Aug. 3, 2023). “! The ultimate ' Tex. Prop. Code § 28.004 (2015) (emphasis added).”
Tex. Prop. Code § 28.004(b): 5 cases
AMX Enter., L.L.P. v. Master Realty Corp., 283 S.W.3d 506 (Tex. App.—Fort Worth 2009). “” Tex. Prop.Code Ann. § 28.004. Likewise, the statute at issue in Marineau v.”
Edifika Investments, LLC D/B/A Military Vill. Apts. v. Chain & Chain Constr., LLC, No. 04-21-00568-CV (Tex. App.—San Antonio May 17, 2023).
Mulch Matters, Inc. & Prime Trees, Inc. D/B/A Mulch Matters v. Toro Rojo, D/B/A Action Trucking Co., No. 01-22-00322-CV (Tex. App.—Houston [1st Dist.] Apr. 30, 2024). “At trial, the parties disputed whether this $110 rate was a 1 TEX. PROP. CODE § 28.004. 2 This subcontract was between ATZ and “Prime Trees Inc.”
Hilary Rochelle v. Travis Servs. Grp., Inc & Travis Co. D/B/A Puroclean Servs., No. 01-23-00004-CV (Tex. App.—Houston [1st Dist.] Aug. 13, 2024). “See TEX. PROP. CODE § 28.004. In a related sub-issue, Travis alleges that the trial court should have awarded interest through October 7, 2022 (the date of judgment) rather than August 31, 2022.”
Mega Builders, Inc. D/B/A Mega & Assocs. v. Paramount Stores, Inc., No. 14-14-00744-CV (Tex. App.—Houston [14th Dist.] May 28, 2015).
Tex. Prop. Code § 28.004(c): 2 cases
Alan Gordon, Lauren Gordon, & IBL Constr. & Design, LLC v. Dennis Leasman D/B/A Leasman Contracting, 365 S.W.3d 109 (Tex. App.—Houston [1st Dist.] 2011). “See Tex. Prop.Code Ann. § 28.004 (West 2000).”
Hilary Rochelle v. Travis Servs. Grp., Inc & Travis Co. D/B/A Puroclean Servs., No. 01-23-00004-CV (Tex. App.—Houston [1st Dist.] Aug. 13, 2024). “See TEX. PROP. CODE § 28.004. In a related sub-issue, Travis alleges that the trial court should have awarded interest through October 7, 2022 (the date of judgment) rather than August 31, 2022.”
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