Owners’ Rights Pursuing Claims Directly Against Subcontractors/Vendors

In construction disputes, owners typically deal with defects within the scope of work of the subcontractor or vendor by pursuing claims directly against the general contractor. The owner, however, may consider pursuing claims directly against a subcontractor or vendor under certain circumstances.

Potential ...

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The Initial Decision Maker: Coordinating the Owner-Architect and Owner-Contractor Agreements

Coordination between the Owner-Architect Agreement and the Owner-Contractor Agreement is crucial for any successful project. In particular, the parties may overlook the provisions related to an Initial Decision Maker (“IDM”). When the fight breaks out, there are usually conflicting claims whether the ...

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Understanding the Texas Prompt Payment Act

The construction industry is a cornerstone of Texas’s robust economy, and timely payments are critical for maintaining the health of this sector. To ensure that contractors, subcontractors, and suppliers are paid promptly for their work, Texas has implemented the Texas Prompt Payment Act (“the Act”)

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What do you mean I don’t own the plan?

The Owner and Architect of a Project may sometimes strongly disagree on who should or does own the designs, plans, and specifications that the Owner pays the Architect and its consultants to produce. The meaning of “ownership” is a core part of this argument. This article provides a very basic overview of the ...

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Key Considerations to Perfect Performance Bond Claims in Texas

Perfecting a performance bond claim in Texas requires careful attention to legal requirements and procedural details set forth on the face of the bond and under Texas law. Perfection of a performance bond claim is often intertwined and complicated by owner concerns over project delays that arise any time a ...

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This blog post addresses: (1) steps to be taken, (2) issues to be aware of, and (3) recovery prospects when a general contractor files for bankruptcy protection under Chapter 11 of the Bankruptcy Code, from the owner’s perspective.

1. The Automatic Stay Prohibits Taking Immediate Adverse Action Against the ...

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The Sweeping Application of the Texas Construction Anti-Indemnity Act

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,” ...

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The 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 ...

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Strict Deadlines Apply to Motions to Vacate Arbitration Awards Under the Federal and Texas Arbitration Acts

When 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 ...

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Texas Supreme Court Rules on Governmental Immunity in Construction Contract Dispute

Last 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 ...

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