While this coronavirus event grips the nation, contractors and subcontractors are asking whether this qualifies as a force majeure or changed condition event. We think it qualifies as both.
When you bid and signed your contracts, if the force majeure clause was given any thought, it likely was about the impact of a ...More
The Small Business Administration (SBA) has designated COVID-19 as a qualifying event for the provision of Economic Injury Disaster Loans to small businesses and private non-profits. As a result, on March 17, 2020, Governor Greg Abbott requested an emergency designation from the SBA for the entire state of Texas ...More
The spread of COVID-19 has severely impacted our nation and economy. We are facing lockdowns, travel bans, and massive disruptions to day-to-day activities as authorities work to stop the spread of COVID-19. As the virus-related impacts spread, parties are likely to find it increasingly difficult to meet their ...More
Subcontractors have long celebrated—and general contractors long feared—the Texas Construction Trust Fund Act, codified in Chapter 162 of the Texas Property Code. The Act, which is (ideally) construed broadly to primarily protect subcontractors, provides that payments “made to a contractor or ...More
If you are involved in the construction industry, you have probably heard of or dealt with mechanic’s liens. The majority of work performed on private Texas construction projects will fall under Chapter 53 of the Texas Property Code, to which mechanic’s liens apply. However, certain projects involve work ...More
Unlike with private commercial projects, liens cannot be filed against public projects in Texas. This means that unpaid subcontractors and suppliers do not have the same protections on public projects as those on private projects. On a private project, a subcontractor or supplier would ordinarily file a lien ...More
Texas law has certain peculiarities which must be followed when a project is located in Texas. To avoid surprises and unanticipated liability on construction projects, the parties should modify contracts consistent with Texas law—or at least be aware of the limitations that are in place due to certain Texas ...More
What should a Subcontractor do when a General Contractor presents, to the Subcontractor, the 401A-2017 Standard Form of Agreement Between Contractor and Subcontractor (“A401”)? While some provisions in the A401 are favorable to the Subcontractor, others are not. This multi-part series explores some of the ...More
Different types of damages may be recoverable from a breach of a design, construction, EPC or other construction-related contracts. The baseline damages are “direct” damages, which are necessarily caused by a breach and compensate for the losses, for example the costs to repair faulty work ...More
Commercial construction contracts between owners and contractors, such as the form AIA Document A201 contract, often include various express warranties whereby the contractor warrants its work on the project to the owner. Among those express warranties are the more common warranties that: (i) the materials and ...More
- Is the Coronavirus Event a Force Majeure or Changed Condition Event?
- Small Business Economic Injury Disaster Loans
- COVID-19 Made Performance Impossible – Now What?
- A Matter of Trust – Avoiding the Pitfalls of the Texas Construction Trust Fund Act
- Different Types of Construction Work: Chapter 56 vs. Chapter 53 and Why It Matters
- Perfecting Bond Claims on Public Projects in Texas
- Top Five Construction Contract Modifications to Comply with Texas Law
- Part 1: Subcontractor Negotiating Tips for AIA Documents
- The Consequences of Betting the Ranch
- Call-Back Periods in Call-Back Warranties – the Confusion Surrounding Their Effect on Other Warranties in Construction Contracts