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....more
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] ...more
With 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...more
Excluding consequential damages has become a regular part of negotiating engineering and construction contracts. A typical clause excludes recovery of indirect, exemplary, and consequential damages for both parties. Beyond...more
Change orders can quickly become a source of contention on construction projects and are often the subject of major disputes. As a result, it is important for stakeholders to carefully draft and negotiate the change order and...more
In a case critical to Texas contract and partnership law, on January 31 the Texas Supreme Court confirmed that parties can negate the formation of a partnership through their contractual language. The Court affirmed an...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...more
Owners of construction projects are often surprised to learn that they are required to withhold 10% retainage on private construction projects in Texas. Failure to withhold 10% can result in liability up to that amount....more
In Nghiem v. Sajib1, the Texas Supreme Court resolved a dispute amongst the Texas Courts of Appeal regarding implied warranty claims…sort of. The court primarily held that a plaintiff is not required to bring a claim for...more
As described by my colleague Sean McChristian in Part 1 of this two-part blog series, planning for hurricane season in Texas is a critical part of mitigating risk in the construction industry. In addition to reviewing force...more
The Texas Supreme Court recently issued an opinion that could impact the next construction project where multiple parties complain about who breached (and who breached first) and whether the parties must continue performing...more
The Texas Supreme Court recently issued an important decision regarding the ability of general contractors to seek indemnity from manufacturers of defective products. In Centerpoint Builders GP, LLC v. Trussway, Ltd., the...more