Texas Construction Law Blog

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 ...

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 ...

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 ...

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 ...

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 ...

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 ...

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 running, before filing suit, you ...

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 ...

When entering into construction contracts, the question of which state’s laws will govern is a pivotal consideration. Choice of law has real-world implications for how construction disputes are resolved. Different states have varying laws on contract interpretation, remedies, and liability. For instance ...

While change orders are widely viewed as a mechanism to increase the contract price in a construction contract, sophisticated players understand that change orders can and should be used to manage claims. 

From the owner’s perspective, change orders are often used to finalize compensation and delay days for ...