Performance vs. Payment Bonds: Key Differences
Performance vs. Payment Bonds: Key Differences Performance bonds and payment bonds are essential components of construction contracts, providing financial security and assurance to project stakeholders. While they serve distinct purposes, understanding the differences between these two types of bonds is crucial for contractors, subcontractors, owners, and other parties involved in construction projects. Performance Bonds: Performance […]
Understanding the Waiver of Consequential Damages in Construction Contracts
Understanding the Waiver of Consequential Damages in Construction Contracts In the realm of construction contracts, the waiver of consequential damages is a critical provision that often merits careful consideration and negotiation among parties. Consequential damages refer to indirect or special losses incurred by one party as a result of the other party’s breach of contract, […]
Texas Construction Fund Statute
Texas Construction Fund Statute In Texas, the Construction Fund Statute stands as a pivotal piece of legislation aimed at safeguarding the interests of subcontractors, suppliers, and other parties involved in construction projects. Enacted to ensure that those contributing labor, materials, or services to a construction project are fairly compensated, the statute establishes mechanisms to secure […]
Texas Deceptive Trade Practices Act
Texas Deceptive Trade Practices Act In Texas, consumers and businesses alike are protected by the Texas Deceptive Trade Practices Act (DTPA), a crucial piece of legislation designed to safeguard against unfair and deceptive trade practices. Enacted to promote fair competition and protect consumers from fraudulent or deceptive business practices, the DTPA serves as a powerful […]
Breach of Warranty Claims in Construction
Breach of Warranty Claims in Construction In the intricate world of construction, ensuring that the end product meets the promised standards is paramount. However, despite meticulous planning and execution, there are instances where discrepancies arise between the agreed-upon specifications and the delivered results. In such cases, breach of warranty claims becomes a significant concern for […]
Tips for Contractors to Avoid Litigation
Tips for Contractors to Avoid Litigation Contractors operate in a complex environment where legal pitfalls can arise unexpectedly, leading to costly litigation. Here are five essential tips to help contractors navigate their projects smoothly and minimize the risk of litigation: By following these tips, contractors can proactively manage risks, foster positive relationships with clients and […]
Overview of the Typical Litigation Process in Texas
The litigation process in Texas, like in many other jurisdictions, generally follows a structured series of steps from the filing of a lawsuit to the resolution of the case. Here’s an overview of the typical litigation process in Texas: Throughout the litigation process, parties may engage in settlement negotiations or alternative dispute resolution methods such […]
Fixed Price Construction Contract Explained
A fixed price construction contract, also known as a lump sum or stipulated sum contract, is a type of agreement where the contractor agrees to complete a construction project for a predetermined fixed price. Here’s how it works: Fixed price construction contracts offer several advantages, including cost predictability, clear project scope, and simplified payment arrangements. […]
Costs Plus Construction Contract Explained
A “Costs Plus Construction Contract,” also known as a cost-reimbursement contract, is a type of construction agreement where the client agrees to reimburse the contractor for the actual costs incurred during construction, plus an additional fee or percentage to cover overhead and profit. Here’s how it works: Overall, costs plus construction contracts offer a flexible […]
Use of Experts in Construction Defect Litigation
In construction defect litigation, the use of experts plays a crucial role in assessing and proving issues related to the construction process, materials used, design flaws, and overall quality of workmanship. Here’s how experts are typically utilized: Overall, the expertise of these professionals is essential in identifying, analyzing, and resolving construction defects, as well as […]