Construction Contracts

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 have different authors, which means typically no two clauses are ever drafted the same.

This is particularly important when it comes to “No Damage For Delay” Clauses as the actual breadth of the language and scope will set the tone for their enforcement or circumvention. There are several common law exceptions to “No Damage for Delay” clauses recognized in Texas, which may be neutralized or ignored by the particular language of a “No Damage for Delay” Clause.
Continue Reading How to Circumvent “No Damages for Delay” Clauses

Because of time constraints and the desire to get the business, subcontractors and suppliers routinely sign lengthy subcontracts and master service agreements without closely reading the terms and conditions.  Below are some clauses that every subcontractor and supplier should review in a contract.
Continue Reading Important Contract Clauses for Subcontractors and Suppliers

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

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

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