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Texas Construction Law Blog For Subcontractors & Suppliers

Category Archives: Construction Contracts

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Establishing Personal Liability Without a Guaranty

Posted in Collection, Construction Contracts

Co-author: Trevor Lawhorn Published in Build Houston Magazine When non-payment occurs, suppliers and service providers often first seek relief by suing for breach of contract. Unfortunately, many companies are undercapitalized or otherwise “judgment proof.”  A personal guaranty might mitigate this risk by providing an additional target, but guarantees are often difficult to obtain.  Even if… Continue Reading

The Storm After the Storm

Posted in Collection, Construction Contracts

Co-authors: Russell Jumper and Tim Fandrey Published in Cleaning & Restoration Magazine Just as the Texas coast assessed the magnitude of Hurricane Harvey’s damage, Hurricane Irma was taking shape in the Atlantic. Fewer than two weeks later, Irma would crash into the Florida Keys. Estimates put Harvey and Irma’s combined impact in excess of $275… Continue Reading

How to Circumvent “No Damages for Delay” Clauses

Posted in Collection, Construction Contracts, Delay Damages, Uncategorized

Most commercial construction contracts contain a “No Damage For Delay” Clause and most contractors mistakenly believe they are Kings X for any potential claims related to delay caused by an owner or original contractor. While nearly every commercial construction contract contains the same or similar provisions, it is important to keep in mind they all… Continue Reading

Implied Warranties: Part One (Goods)

Posted in Construction Contracts

Texas law imposes certain implied warranties on the sale of goods, regardless of whether the warranties are mentioned in the contract.  In particular, Texas law creates the warranty of “merchantability” and the warranty that the goods are “fit for a particular purpose.”

Arbitration vs. Bench Trial

Posted in Arbitration, Construction Contracts

Arbitration clauses are very common in contracts in the construction and energy industries.  Many industry players reflexively  insist on arbitration despite its pitfalls.  While arbitration has its place, a bench trial is a viable alternative to arbitration. Bench trials are simply trials to a judge rather than a jury.  Parties may agree to a bench… Continue Reading

Pay-If-Paid Clauses: A Powerful Shield From Payment

Posted in Construction Contracts

Subcontracts typically contain either a pay-when-paid clause or a pay-if-paid (i.e., contingent payment) clause.  A pay-when-paid clause only deals with the timing of the obligation to pay the subcontractor.  In other words, the general contractor’s obligation to pay the subcontractor (or the supplier) is due at some point in time after the the general contractor… Continue Reading

Joint Check Agreements

Posted in Construction Contracts

If you supply construction materials and/or equipment then you likely have encountered a joint check agreement.  For those that have not yet encountered this arrangement, a joint check agreement is a credit facility frequently used to help subcontractors with unestablished credit obtain supplies and services on credit from a supply house.  For example, if you… Continue Reading