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When an owner pays a contractor, that money is supposed to flow down the chain to the subcontractors and suppliers who contributed to the project. The Texas Construction Trust Fund Act (see Chapter 162 of the Texas Property Code) exists to make sure it does. Texas law treats certain construction payments as trust funds and…

In construction projects, it used to be common practice for contractors to push nearly all of the risk to the parties below them, so that subcontractors were responsible for even the upper-tier party’s mistakes. The Texas Construction Anti-Indemnity Act changed that. Found in Chapter 151 of the Texas Insurance Code, the law voids broad risk-shifting…

Payment disputes are common in Texas construction projects. When property owners, contractors, or subcontractors fail to pay for labor or materials, Texas law provides several tools that can help construction professionals secure payment. Constitutional liens and statutory mechanic’s liens are two common tools used in construction claims. What Is a Constitutional Lien?Texas is unique because…

Construction disputes often involve more than the direct cost of repairing defective work. A construction defect or delay can create a chain reaction of financial losses that extends far into the future. These additional losses are commonly known as consequential damages. In Texas construction litigation, consequential damages can significantly increase the value and complexity of a…

Construction delays affect everything from residential developments to large-scale commercial projects. These delays can lead to cost overruns, disputes, and strained relationships between the parties involved.  Below, we explore the most common causes of construction delays in Texas and the legal remedies available when things don’t go according to plan. Common Causes of Construction…

When a contractor abandons a construction project in Texas, it can cause inconvenience, project delays, and additional costs. In fact, abandonment is a material breach of contract under Texas law. In such cases, the property owner has the legal right to terminate the agreement, hire a replacement contractor, and pursue financial damages through a…

A mechanic’s lien is a legal claim filed against property by a contractor, subcontractor, laborer, or material supplier who has not been paid for work performed or materials furnished. These disputes arise frequently in matters involving real estate law. Under the Texas Constitution and the Texas Property Code (Chapter 53), these parties have the…

In Texas, homeowners have legal rights when a contractor delivers substandard work, such as construction defects, incomplete renovations, or work that fails to meet industry standards. Indeed, there are several causes of action for pursuing a claim related to poor workmanship.  Causes of Action for Suing a Contractor in Texas In Texas, you can…