Contracts & Procurement

Orignally published in ABC Houston’s Build Houston Magazine

Construction companies spend countless hours drafting agreements requiring indemnification and insurance for their projects. These obligations are prevalent for all tiers of construction industry members— from subcontractors and suppliers, to project owners. The purpose of this article is to address some considerations in anticipation of a claim

Co-author: Stephanie Snyder-Zuasnabar

In James Construction Group, LLC v. Westlake Chemical Corporation, the Texas Supreme Court clarified the standard necessary to satisfy notice provisions in a construction contract.  The Court’s opinion reached two key holdings: (1) substantial compliance is sufficient to satisfy a party’s obligation under a contractual notice requirement; (2) however, if the

So you want to be a public construction contractor in Texas? First you need to know are the rules—and there are a lot of them. There are statutory procurement regimes for different types of public work, different agencies, and different project delivery methods. Different criteria and standards are used to evaluate all of them.

In an article

One the most litigated or disputed issues in construction is that of the change order. Almost every experienced contractor has dealt with either defending against or pursing change orders relating to additional work, time and costs since owners asking for extra or changed work in the midst of a lump sum project is not an

The winter storm that brought snow, freezing temperatures, power outages, frozen water lines and bursting pipes to Texas, shutting down most construction projects in the process, forced many contractors and owners to take a look that their contracts to determine who is responsible for the ensuing delays and the costs to repair any damage.

Force

The general prohibition against waiving lien rights under Chapter 53 of the Texas Property Code has been written about extensively, and is well known throughout the industry.  However, the Construction Trust Fund Act (Ch. 162 of the Texas Property Code) does not contain any such prohibition.  From the Act itself, it is not clear whether

COVID-19 is now interrupting and, in some instances, cancelling contracts across the country.  While the situation is highly fluid, these business disruptions appear likely to continue and perhaps even worsen in the immediate future.  This will significantly affect and perhaps threaten businesses people have worked had to establish.  And it will of course impact employees

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 one is signed, the guarantors may lack assets, perhaps deliberately so.  Judgement proof debtors and guarantors are especially frustrating when the case involves misappropriations of construction project funds or wrongful transfers of assets.  Texas law provides at least two statutory tort claims in these circumstances: the Texas Uniform Fraudulent Transfer Act (TUFTA) and the Texas Construction Trust Funds Act (the Trust Fund Statute).

Construction lawyers routinely deal with delay claims. I have presented or defended more of them than I can remember.  That is why I was curious when, earlier this year, I received a series of email invitations to presentations on the use of “concurrent delay” as a defense to contractor or owner claims for delay damages on construction projects.  I’ve written about the subject in the past and wondered what, if anything, had changed.