Houston, TX asked in Contracts, Employment Law and Business Law for Texas

Q: Is it legal for a property management company to force a contractor to fill out a questionnaire inquiring if we the con

Is it legal for a property management company to withhold payment and force a contractor to fill out a questionnaire inquiring if we the conTractor or contractor’s employees are part of any civil or criminal actions, administrative, or legal proceedings? Not that we are but I found it odd that they would withhold payment. The work has already been done and a COI, W9 has been issued. Is this legal in Texas?

1 Lawyer Answer

A: Yes, it is perfectly legal for property management companies to require such sensitive information from contractors, as well as all other venders. In fact, many property management companies require vendors to post surety bonds before hiring them.

Bottom line: If you ever want to work for this company again you should accommodate them by filling out their new questionnaire.

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