When construction defects occur in a commercial or residential project, contractor liability will dictate how you can hold the responsible parties accountable and under which legal theories.
In Texas, a contractor can generally be held liable when a defect in their work directly results in:
- Physical damage to the structure
- Malfunction of a building component
- A safety hazard to the occupants
Not all cosmetic issues or minor imperfections will rise to the level of legal liability. The defect must affect structural performance, safety, or functionality to create grounds for a claim.
Texas Residential Construction Liability Act (RCLA)
The Residential Construction Liability Act (RCLA) outlines the process for resolving disputes between builders and residential property owners. Under this law, homeowners must follow specific procedures before filing a lawsuit, including:
- 60-Day Written Notice – Before filing a lawsuit or initiating arbitration, a homeowner must provide the contractor with a detailed written notice at least 60 days in advance. This notice must outline the alleged construction defects in reasonable detail.
- Inspection Opportunity – Upon receiving the notice, the contractor has 35 days to inspect the property to assess the claimed defects.
- Repair or Settlement Offer – Within 45 days of receiving the notice, the contractor may make a written offer to either repair the defects, provide a cash settlement, or a combination of both.
Failure to comply with these steps may eliminate a homeowner’s ability to recover damages in court. The RCLA is designed to encourage out-of-court resolution before litigation, but it also provides important protections for homeowners dealing with legitimate defects.
Liability in Commercial Construction
In Texas, there is no direct analog to the Residential Construction Liability Act (RCLA) for commercial construction. The RCLA specifically applies to residential construction projects, including single-family homes, condominiums, townhomes, and similar residential structures.
For commercial construction projects, disputes over defects, delays, or contract breaches are generally governed by:
- Texas Common Law
- Notice and Cure Provisions
- Alternative Dispute Resolution (ADR) clauses, including mediation or arbitration
- Limitation of Liability or Waiver Provisions
These contract provisions often serve a similar practical function to the RCLA by requiring pre-litigation steps before court intervention.
Common Theories of Contractor Liability
Contractor liability in Texas can cover several scenarios, including:
- Negligence, i.e., failing to meet industry standards or properly supervise construction work
- Breach of Contract, including deviating from the agreed-upon plans, materials, or timelines
- Breach of Warranty for violating express or implied warranties regarding the quality or fitness of the construction
- Failure to Disclose Known Defects when contractors know about design or construction flaws and fail to notify the property owner.
General contractors may also be held accountable for the work of subcontractors under certain circumstances. In many cases, property owners may have multiple causes of action against a contractor.
Design Defects vs. Construction Defects
Texas construction law makes a distinction between design defects and construction defects. Under Texas law, Contractors are generally not liable for flaws in designs provided by the property owner or their architect. However, contractors can be held accountable if they contribute to design flaws or fail to disclose known issues during the project.
In contrast, construction defects, such as poor workmanship, improper installation, or the use of inferior materials, fall squarely on the contractor’s shoulders.
How a Houston Real Estate Attorney Can Help Hold a Contractor Liable
Navigating construction defect claims requires a thorough understanding of Texas law and strict adherence to required procedures. An experienced construction attorney can help by:
- Determining whether a defect is design-related, construction-related, or both
- Identifying liable parties, including contractors, subcontractors, or material suppliers
- Complying with deadlines for notice, inspections, and filing claims
- Coordinating with engineers or building experts to document defects and prove liability
- Representing your interests through mediation, arbitration, or litigation
If you are facing construction defects or contractor disputes, contact Porter Law Firm today to schedule a consultation and learn how we can help. We are committed to holding negligent contractors accountable and protecting property owners’ rights