Texas Supreme Court Confirms Rights of Subcontractors to Sue GCs
In Dealers Electrical Supply Co. v. Scoggins Construction Co. Inc., the Texas Supreme Court confirmed the right of a construction subcontractor to bring a claim against a general contractor when the sub has missed the strict notice requirements for a claim on a McGregor Act bond.
If a subcontractor is not paid for work on a private construction project, it can file a lien on the property. But if the construction is on a public project for a unit of government, a bond is filed and the subcontractor’s usual recourse is to sue on the bond under the McGregor act.