Should I File My Next Construction Case in the New Texas Business Court? Maybe. (Nov 2025 Update)

NOVEMBER 2025 UPDATE - THE TEXAS BUSINESS COURT'S JURIDSDICTION HAS EXPANDED

In February 2025, we wrote about the new Texas Business Court and factors to consider in determining whether to file your next construction suit in Texas’ new court. Since then, the Texas Legislature has expanded the Texas Business ...

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You Agreed to Arbitrate, but the Other Side Refuses, What Now?

A growing number of construction contracts now contain arbitration clauses. Yet, even with an arbitration clause, you may still find yourself before the court because your counterparty refuses to arbitrate.

You have options. You can insist on your right to arbitrate by filing a motion to compel arbitration. Both ...

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Lesson Learned from a Forever Arbitration – Interest on Stipulated/Contingent Settlements

A recent opinion from the Fourth Circuit Court of Appeals[1] highlighted a seemingly minor issue that can have huge future consequences: how to determine pre- or post-award interest on amounts that depend on contingent events in arbitration proceedings. From 2007 to 2008, a series of disputes arose between ...

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Contingent Payment Clause Held Unenforceable due to Unfairness

Contingent payment clauses are often used in connection with contracts between general contractors and subcontractors or subcontractors and lower tiered subcontractors. Essentially, this type of clause provides that a general contractor does not owe a subcontractor unless the owner has paid the general ...

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Design-Build v. Design-Bid-Build: Legal Considerations

Selecting the right project delivery method is crucial — not just from a design and budgeting standpoint, but also from a legal standpoint. Two of the most common delivery methods are Design-Build (DB) and Design-Bid-Build (DBB). Each approach has its unique legal implications that significantly affect ...

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Texas House Bill 40 Will Reshape the New Texas Business Courts

On June 1, 2025, the Texas legislature passed HB 40, and Governor Greg Abbott signed it on June 21, 2025. The new law helps further define the jurisdiction of Texas’s Business Courts, originally established in 2023. This is an analysis of key changes in the bill, which will take effect on September 1, 2025. With ...

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Construction Law Update from the 89th Texas Legislature Regular Session

The Texas Legislature is currently in session and is scheduled to adjourn on June 2, 2025. Porter Hedges is actively monitoring any legislation that influences Texas construction law and impacts construction projects, contracts, and legal rights.

Senate Bill 929: Clarifies Lien Deadlines and Priority Dates for ...

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Since February 2025, numerous tariffs affecting the construction industry have been announced, imposed, and paused. These tariffs present a problem for parties drafting and negotiating construction contracts—namely how to allocate and address double digit cost increases caused by tariffs. Tariffs may ...

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Should I File My Next Construction Case in the New Texas Business Court? Maybe.

Read our November 2025 Update here

The Texas Business Court is a statewide, specialized trial court created to resolve certain complex business disputes. Five of the planned eleven divisions began operating September 1, 2024, with two appointed judges in each division. Now that the Texas Business Court is up and ...

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How Long Does that “One Year Warranty” Last? Longer than You Might Think

If you ask owners, general contractors, or subcontractors how long the warranty lasts that they received or gave on a construction project, they will often tell you that they have a “one year warranty.” However, if the parties used a standard construction contract form such as those from the American Institute ...

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