RE: REMOVING THE PAID WHEN PAID AND PAID IF PAID LAWS

RE: REMOVING THE PAID WHEN PAID AND PAID IF PAID LAWS

Dear Sir,

The AIC code of ethics states that constructors must be handled with the highest degree of professionalism and that none of them should be mistreated or treated unfairly. This letter is to inform the Texas state representative that the paid if and paid when legislations should be abolished, for they present major challenges to subcontractors. According to the AIC code of ethics, individuals should be treated fairly when it comes to payment and agreement that they assign with general contractors. The paid when and paid if laws, in my view, do not guarantee equality and fairness. Most of the contractors in Texas work hard for the general contractors but failed to get their compensation within a reasonable time due to the existence of the two stated laws that have persistently denied them timely compensation.

Since these laws pose major hurdles to contractors, my plea to Texas Representative is to look at the existing laws and implement various reforms to find the solution to these laws that have continually frustrated the subcontractors. The laws should be abolished to ensure subcontractors receive their payments without delay, and the unpaid dues are all honoured as per the terms of the contract. Many subcontractors are suffering and are frustrated as they have been forced to wait long to receive their payments. In some cases, subcontractors are forced to endure the harsh reality of not being paid. According to the contract laws of the country, parties to the contract are expected to honor part of their agreements, and this is my major concern with the existing laws. The laws are really frustrating and must be abolished or amended to specify the minimum grace period that the general contractor is required to pay its contractors. There is no point for keeping subcontractors waiting for long to get their dues, especially after they have honored the whole agreement; such amount must be paid within a reasonable time to allow subcontractors also to continue with their normal routines. Subcontractors are not treated fairly, and the existing laws seem to side with the general contractors.  Therefore, it is my opinion that the laws are done away with, or they should be changed so that the subcontractors can also benefit from having prompt payment once they have accomplished the assigned duties.  Some of them may end up not getting the money after sacrificing their time and money, which is clearly an injustice. The paid if and paid when laws are outdated and must be abolished or replaced with new laws.

As a construction worker and a subcontractor, I truly understand the pain of not getting paid after putting a lot of effort to accomplish the assigned duties. If the existing laws (the paid if and paid when laws) are replaced, many contractors will continue to suffer, which is unethical, especially in business ethics. As a result, it is important for the state of Texas to address the woes of subcontractors and make the payment terms more favourable.

There are many states in the country that have done away with these laws and function well. Therefore, the right time to change these two laws is now. If these laws are changed to meet the demands of subcontractors and other individuals who suffer from within this industry, it will not only improve the worth ethics and motivate subcontractors to work hard to meet set deadlines. If the existing laws are reformed, players within this industry will feel motivated to engage in different projects like other states within the country. States like Utah, North Carolina, and New York, among others, have rejected the pay if paid and paid when laws and have adopted other measures to ensure the problems experienced in Texas do not take place in their states.  The state of Texas needs to shift to other measures to ensure subcontractors can benefit and get paid within a reasonable time because these people also have other people

that they support.

The construction companies in Texas should do away with these two laws to improve the working relationship between the general contractor and subcontractors. It is also important to embrace the changes if passed to allow subcontractors to work freely and offer quality services. The Texas laws especially that guide contracts should be reviewed and new laws enacted as done in other states to ensure subcontractors’ challenges are addressed within a reasonable time because they play a critical role in the construction industry and their complaints must not be neglected as though they do not deserve better terms of payments. For other sectors of the economy, business ethics influences working relationships between different parties to contract and should guide the organizations to run their operations according to the set ethical and moral standards and values. As I conclude, all firms need to follow and adhere to the AIC laws because they enhance the good working relationship between different players in the same industry.

Yours sincerely

Name

Signature

References

Vee, C., & Skitmore, C. (2003). Professional ethics in the construction industry. Engineering, Construction, and Architectural Management.