The private and public prompt pay acts both provide contractors and subcontractors with the right to stop work if an owner or upstream contractor fails to pay an undisputed amount. With H.B. 3485, the Texas legislature has...more
In James Construction Group, LLC v. Westlake Chemical Corporation, the Texas Supreme Court clarified the standard necessary to satisfy notice provisions in a construction contract. The Court’s opinion reached two key...more
Texas has new lien laws that affect all construction projects with a prime contract dated on or after January 1, 2022. The new lien laws are particularly helpful to architects, engineers, and surveyors. Design professionals...more
My law partner, David Gair, and I recently wrote a paper regarding the energy-efficient commercial building tax deduction (IRC § 179D). The upshot is that the Consolidated Appropriations Act of 2021 recently made this...more
The general prohibition against waiving lien rights under Chapter 53 of the Texas Property Code has been written about extensively, and is well known through the industry. However, the Construction Trust Fund Act (Ch. 162 of...more
When owners file bankruptcy or projects otherwise go south, lien priority often comes to the forefront. The idea is relatively simple. Priority is how courts determine which creditors get paid first. This often pits...more
COVID-19 is now interrupting and, in some instances, cancelling contracts across the country. While the situation is highly fluid, these business disruptions appear likely to continue and perhaps even worsen in the immediate...more
Texas surety law contains obscure procedural rules that can have outsized consequences. Chapter 43 of the Civil Practice and Remedies Code is an important example....more
2/11/2020
/ Construction Contracts ,
Construction Project ,
Contract Disputes ,
Contract Drafting ,
Contract Negotiations ,
Contract Terms ,
Federal Rules of Civil Procedure ,
Payment Bonds ,
Performance Bonds ,
Personal Guaranties ,
Subrogation ,
Suretyships ,
Waivers
The Fourteenth Court of Appeals in Houston recently issued an opinion that will have profound impacts on mineral liens and contractual provisions purporting to waive mineral liens. The question of whether or not a pre-work...more
12/31/2019
/ Appeals ,
Commercial Bankruptcy ,
Contract Terms ,
Liens ,
Master Service Agreement ,
Mineral Exploration ,
Mineral Leases ,
Minerals ,
Oil & Gas ,
Parent Corporation ,
Public Policy ,
Summary Judgment ,
Void and Unenforceable ,
Waiver of Rights ,
Waivers ,
Well Drilling
When non-payment occurs, suppliers and service providers often first seek relief by suing for breach of contract. Unfortunately, many companies are undercapitalized or otherwise “judgment proof.” A personal guaranty might...more
Texas is a hot-bed for construction. In 2016, according to the Virtual Builders Exchange, Texas was second only to New York in construction expenditures, spending $44.4 billion. And there is no sign that the proliferation of...more
Everybody from the well site to the board room has an opinion about when oil prices will “rebound”. Rather than an opinion, we have a question: How do I collect my money while we’re waiting?
This post is a refresher for...more
Texas law imposes certain implied warranties on the sale of goods, regardless of whether the warranties are mentioned in the contract. In particular, Texas law creates the warranty of “merchantability” and the warranty that...more
Commercial landlords often allow commercial tenants to construct a buildout tailored to their business (e.g., retail stores, restaurants, redesigning office space, etc.). Such tenants hire general contractors who in turn hire...more
If you furnish labor or materials to an oil or gas well and are not paid, then you should consider filing a mineral lien. Below are the steps to perfect a mineral lien....more
Get the project information up front -
You should ask your customer for the owner’s name and address, the location of the project, a copy of the payment bond (if any), and the general contractor’s name and address (if...more
Federally owned construction projects are covered by a Miller Act Payment Bond for the benefit of the subcontractors and suppliers thereof. If you make a claim for payment under the Miller Act, you may, under certain...more
Non-competes are governed by different rules from other contracts. Courts limit non-competes to certain circumstances, such as when an individual has received confidential information, goodwill, or specialized training; even...more
A recent article in the Wall Street Journal discussed the rise in litigation regarding covenants not to compete, along with a summary of the positives and negatives of these covenants....more
Construction legislation in the 2013 session was much different from 2011. In 2011 many new construction related laws were passed including governance of indemnities and mechanic’s liens. In 2013 many significant...more
8/20/2013
/ Architects ,
Construction Disputes ,
Criminal Records ,
Engineering ,
Indemnification ,
Judgment Creditors ,
Licenses ,
Mechanics Lien ,
Modification ,
New Legislation ,
Procurement Guidelines ,
Proposed Legislation ,
Sovereign Immunity ,
Venue ,
Vicarious Liability
Bankruptcy preference claims are always an unpleasant surprise. ...more
Bankruptcy court is often the “court of bad news” for creditors. ...more
Previously, Texas law provided that a court “may” award costs and reasonable attorney fees in a suit to foreclose a lien, enforce a payment bond claim or declare a lien to be invalid to the extent that such costs and...more
Indemnifying someone for their own negligence is a tough pill to swallow. ...more
Because of time constraints and the desire to get the business, subcontractors and suppliers routinely sign lengthy subcontracts and master service agreements without closely reading the terms and conditions. ...more
6/11/2013
/ Arbitration ,
Change Orders ,
Choice-of-Law ,
Contract Drafting ,
Indemnification ,
Liens ,
Payment Schedules ,
Subcontractors ,
Suppliers ,
Termination ,
Warranties