Article Date: 04/20/2009

OWNER'S CHANGE ORDER PAYMENT GUARANTEE ENFORCEABLE BY SUB

Court of Appeals of Texas, Eleventh District

Quantum Electric, Inc. v. Scott & White Properties, Inc.

No. 11-05-00355-CV
October 25, 2007

Overview

A Texas court has ruled that a project owner’s change order payment guarantee did not create a direct contract with a subcontractor. However, the sub could pursue payment from the owner under a third-party beneficiary theory.

Background

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