Opinion ID: 895153
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Heading: The McGregor Act's Purpose

Text: The McGregor Act was enacted to protect public-work laborers and materialmen, since a lien cannot generally be asserted against a public improvement. See Mosher Mfg. Co. v. Equitable Surety Co., 229 S.W. 318, 319-20 (Tex. Comm'n App. 1921, judgm't adopted; Chilton Ins. Co. v. Pate & Pate Enters., Inc., 930 S.W.2d 877, 886 n. 6 (Tex.App.-San Antonio 1996, writ denied); Baxter Constr. Co. v. Hou-Tex Prods., Inc., 718 S.W.2d 355, 357 (Tex. App.-Houston [1st Dist.] 1986, writ ref'd n.r.e.); Barfield v. Henderson, 471 S.W.2d 633, 637 (Tex.Civ.App.-Corpus Christi 1971, writ ref'd n.r.e.). For prime contracts exceeding $25,000, the Act requires the prime contractor to execute to the governmental entity ... a payment bond before beginning work. TEX. GOV'T CODE § 2253.021(a)(2). The payment bond must be for the amount of the prime contract and is solely for the protection and use of payment bond beneficiaries, such as subcontractors, laborers, and materialmen. [3] Id. § 2253.021(c). If the Act's stringent notice requirements are followed, a payment-bond beneficiary who has not been paid may sue the principal or surety, jointly or severally, on the payment bond. Id. § 2253.073(a). The McGregor Act is intended to be a simple and direct method for claimants who supply labor and materials for public-work projects to give notice and perfect their claims under the Act. Capitol Indem. Corp. v. Kirby Rest. Equip. & Chem. Supply Co., 170 S.W.3d 144, 147 (Tex.App.-San Antonio 2005, pet. denied) (citing City of LaPorte v. Taylor, 836 S.W.2d 829, 831-32 (Tex.App.-Houston [1st Dist.] 1992, no writ)). It is well-recognized that the McGregor Act is remedial in nature, and should be liberally construed to achieve its purposes. Id. at 148; Featherlite Bldg. Prods. Corp. v. Constructors Unlimited, Inc., 714 S.W.2d 68, 69 (Tex.App.-Houston [14th Dist.] 1986, writ ref'd n.r.e.).