Contractors in a growing metro wait on draws and owners' payments. Texas law sets some of the clocks that govern when a bill becomes late and when lien rights expire.
Apply Now →Coryell County is on the Edwards Plateau, and Gatesville is the county seat. The county is named for James Coryell, a frontiersman and Texas Ranger, and it is part of the Killeen–Temple metropolitan statistical area. At the 2020 census it had 83,093 residents across about 1,052 square miles.
A metro with two named anchor cities has a steady flow of construction, repair, renovation and service work. For the contractors and trades who do that work, the biggest cash question is rarely how to find jobs. It is how to survive between the day they pay for materials and the day they are paid.
Under the Texas Property Code, section 28.004, overdue amounts on a construction payment accrue interest from the day after the due date at one and one-half percent per month. That gives a contractor a statutory remedy when an owner or higher-tier contractor pays late.
Under section 53.052, a lien affidavit is filed with the county clerk. For non-residential work, an original contractor's deadline is the 15th day of the fourth month after the month in which the work was completed. Missing the date can end the option.
This is general information from the Property Code, not legal advice. Ask a construction attorney about your own contract and dates.
| Step in a job | Cash going out | Cash coming in |
|---|---|---|
| Mobilization | Materials, deposits, permits | Possibly nothing yet |
| Mid-project | Weekly crew payroll, rentals, fuel | Draws on a schedule that may slip |
| Substantial completion | Final materials, punch-list labor | Final payment, retainage held back |
| After completion | Warranty work | Retainage released, sometimes much later |
For illustration only, a contractor on a $200,000 job with 10 percent held as retainage may have $20,000 of earned money that does not arrive until long after the crew has moved on. Multiply that by several jobs and a profitable business can look cash-poor on paper.
Most payment problems in construction trace back to the contract: when is a draw due, what triggers it, what is retained, and who signs off. A contractor who reads those four items before the job starts can predict the cash curve and size any funding request to it. A contractor who does not often learns the schedule when the first draw is late.
Write the dates on a calendar at the start of the job, including the dates under the Property Code that can affect your rights. Then compare the calendar with the weekly payroll and materials you expect to pay. The gap between them is the number to plan around.
Working capital cannot make an owner pay faster, and it is not a substitute for knowing your contract rights. It can cover crew payroll and materials during the wait, so that a late draw does not mean a missed payroll. Funding runs from $25,000 to $5,000,000, funding can arrive in as little as 24 hours, and the credit check at the start is a soft pull. Sole proprietors can apply. The application takes about five minutes.
Under Texas Property Code section 28.004, overdue amounts accrue interest from the day after the due date at one and one-half percent per month.
Under section 53.052, the 15th day of the fourth month after the month in which the work was completed. This is not legal advice.
The Killeen–Temple metropolitan statistical area.
Yes. Retainage and slow draws are common reasons for working capital.
Residential remodeling cash flow can be harder, and we do not promise funding for it. Commercial and other trade work can apply on the same terms as other businesses.
Three months of business bank statements and a 5-minute application. FICO 500+ considered. $25,000 to $5,000,000, funded in as little as 24 hours.
Apply Now →It takes about two minutes and it will not affect your credit score.
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