Although generally known as the “Texas Construction Anti-Indemnity Act,” the sweep of Subchapter C of Chapter 151 of the Texas Insurance Code (the “TCAIA”) is much broader than its name would seem to suggest.[1] Notwithstanding that the TCAIA only applies where there is a “construction contract,” ...
MoreThe Texas legislature has passed House Bill 3485 that may limit owner-directed change orders for owner-directed work. The law takes effect September 1, 2023 for contracts entered into on or after September 1, 2023. The upshot of the bill is that private and governmental owners cannot issue owner-directives (or ...
MoreWhen an arbitration tribunal issues an award, the first thing parties should do is calculate and calendar their deadlines to seek relief in court. This post discusses one such deadline—the one to file a motion to vacate or modify the award. Both the Federal Arbitration Act (FAA) and Texas Arbitration Act (TAA ...
MoreLast week, the Texas Supreme Court issued an important case involving governmental immunity in construction contract disputes. The case, Pepper Lawson Horizon International Group LLC v. Texas Southern University, arose out of a project to construct student housing on TSU’s campus.
Background
The project ...
MoreBonds can play an essential role in protecting owners from the financial risk associated with liens and other contractor claims on Texas construction projects. Two types of commonly used surety bonds are (1) bonds to indemnify against liens, and (2) bonds to pay liens or claims. When and how to utilize these bonds are ...
MoreThe Inflation Reduction Act of 2022 (“IRA”) offered several incentives for the construction industry, including an update of the deduction for energy efficient property installed at commercial buildings under Section 179D of the Internal Revenue Code of 1986, as amended (the “Code”). The CHIPS Act of ...
MoreLiquidated damages provisions are commonplace in construction contracts. One would think that given the strong Texas public policy favoring freedom of contract, bargained for liquidated damages would be easily enforceable in litigation. But Texas law on this issue is counterintuitive and can render a ...
MoreWith material cost volatility in the current market, the topic of price escalation clauses is more prevalent. Some material costs are up and other costs are now down. Traditional lump sum contract structures do not take into account price escalation or de-escalation; whereas cost plus structures entirely and ...
MoreIt’s 3:00 p.m. on a Friday and you’ve been tasked with reviewing a construction contract by close of business. It’s long, and you only have time to review the most important terms. Which ones do you choose?
Divide and Conquer
Contract terms can be divided into three general categories of terms. There are ...
MoreAugust through October marks the peak of hurricane season along the Texas Gulf Coast. Nearly every year, at least some part of the Texas coast feels the impact of a named storm during these months, either by flood, wind, rain, or all three. The resulting damage can create an immediate and dramatic need for contractors ...
MoreRecent Posts
- The Sweeping Application of the Texas Construction Anti-Indemnity Act
- New Texas Legislation that Restricts Owner-Directed Change Order Rights Takes Effect September 1, 2023
- Strict Deadlines Apply to Motions to Vacate Arbitration Awards Under the Federal and Texas Arbitration Acts
- Texas Supreme Court Rules on Governmental Immunity in Construction Contract Dispute
- Bond to Indemnify Against Liens vs. Bond to Pay Liens or Claims
- Recent Construction News under the Inflation Reduction Act
- Tips on Drafting Enforceable and Effective Liquidated Damages Provisions Under Texas Law
- Price Escalation Considerations in Construction Contracts
- Top Five Provisions to Review in Your Construction Contract
- Hurricane Season - Damage Repair Contract Protection for Consumers and Contractors
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