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Texas

Contract administration on Texas construction

The contract forms, payment statutes and notice regimes that decide when you get paid and what you have to serve to keep the right.

9 authorities, 9 statutory, 9 free to read.

StatutoryFree to read

Business & Commerce Code ch. 59 - contractor liability for design defects

State of Texas

responsibility for owner-furnished designduty to report discovered design defectscodified Spearin-type risk allocation

Texas has codified what other jurisdictions leave to the Spearin doctrine and attached a reporting duty to it. It converts the RFI from an administrative habit into the discharge of a statutory duty, which is a concrete reason to date and keep them.

StatutoryFree to read

Government Code ch. 2269 (contracting and delivery procedures), ch. 2253 (public work performance and payment bonds), ch. 2251 (prompt payment by governmental entities), ch. 2252 subch. B (retainage) and ch. 2258 (prevailing wage rates)

State of Texas

delivery method selectionperformance and payment bondspublic prompt paymentretainage limitsprevailing wage

One handle for the five statutes that between them govern how a Texas public job is bought, bonded, paid and retained. On public work these displace the lien regime entirely, which is the single most consequential fact in the region.

StatutoryFree to read

Insurance Code ch. 151 subch. C - Texas construction anti-indemnity provisions

State of Texas

indemnity clauses in construction contractsadditional insured requirementsrisk transfer down the subcontract chain

Changes how a Texas subcontract should be read and priced. A broad indemnity here is usually unenforceable, so pricing risk into it prices something that will not bite, and relying on it upstream relies on nothing.

StatutoryFree to readCurrent through the 88th Legislature; enacted by Acts 2007, 80th Leg., Ch. 885 (H.B. 2278), effective 1 April 2009

Texas Business and Commerce Code, Chapter 601 (Home Solicitation Transactions)

Texas Legislature

consumer transactions solicited away from the merchant's place of businessthe three business day right to cancelthe cancellation notice required beside the signaturethe detachable notice of cancellation formprohibited terms in consumer contractsvoidness and damages for non-compliance

The most under-appreciated exposure on the residential side. A roofing or remodelling contractor who signs at the customer's kitchen table after knocking on the door is inside this chapter, the notice and the detachable form are both mandatory and both size-specified, and the consequence of getting the form wrong is that the contract is void and no compensation is recoverable for services already performed. It is a formatting requirement with a total-loss failure mode.

StatutoryFree to read

Texas construction licensing regime - state trade licences and municipal contractor registration

Texas Department of Licensing and Regulation; Texas State Board of Plumbing Examiners; Texas municipalities

state trade licensingmunicipal contractor registrationwho may pull a permit

The commonest wrong assumption made about Texas by anyone arriving from a licence state. The answer is genuinely 'it depends on the city', and saying that precisely, with the trades carved out, is more useful than any national summary.

StatutoryFree to readCurrent through the 88th Legislature

Texas Government Code, Chapter 2253 (Public Work Performance and Payment Bonds)

Texas Legislature

performance and payment bonds on public workbond thresholds by contract value and entity typeperfection of payment bond claimsthe sworn statement of account accompanying a bond claimnotice deadlines for direct and indirect bond claimantssuit on a payment bond

Public property cannot be liened, so on public work the bond is the only route and the sworn statement of account is the document that carries the claim. Its content requirements, that all known lawful offsets, payments and credits have been allowed and that retainage not yet due is stated, are what make the account a distinct deliverable rather than a stack of invoices with a covering letter.

StatutoryFree to readCurrent through the 88th Legislature; amended by Acts 2023, 88th Leg., Ch. 291 (S.B. 1768) and Ch. 441 (H.B. 2022)

Texas Property Code, Chapter 27 (Residential Construction Liability)

Texas Legislature

residential construction defect claimspre-suit notice and inspection rightsoffers of settlementthe construction defect disclosure required in residential contracts

Relevant to the contract rather than the invoice, but it belongs in the same pack because the notice is a drafting requirement on the residential contract and its omission carries a civil penalty. The inspect and cure route it advertises is worth more to the contractor than the notice costs to include.

StatutoryFree to readCurrent through the 88th Legislature; Subchapters C, D, E and L substantially rewritten by Acts 2021, 87th Leg., Ch. 690 (H.B. 2237), effective 1 January 2022

Texas Property Code, Chapter 53 (Mechanic's, Contractor's, or Materialman's Lien)

Texas Legislature

mechanic's, contractor's and materialman's liensowner's reserved funds and retainagenotices of claim for unpaid labour, materials and retainagelien affidavits and their deadlinesresidential construction project procedureshomestead contract formalitiesstatutory waiver and release of lien or payment bond claimbills-paid affidavitspayment bonds on private work

This is the single most load-bearing authority for the Texas invoice. Three things in it have no equivalent in most states: the owner's statutory reserve is a duty imposed on the owner rather than a contract term, the waiver and release forms are prescribed by statute rather than negotiated, and the notice clocks run from the calendar month of the work rather than from the invoice date.

The rest of the Texas register

The register tells you what. The back office does it.

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