There are several items that must be included in a construction contract
Attention Contractors: Does Your Contract Comply with Texas Law?
Section 41.007 deals with home improvement contracts and sets forth several items that must be disclosed in the contract.
For example, a contract for improvements to an existing residence must contain:
(1) the contractor’s certificate of registration number from the Texas Residential Construction Commission if the contractor is required to register as a builder with the commission;
(2) the address and telephone number at which the owner may file a complaint with the Texas Residential Construction Commission about the conduct of the contractor if the contractor is required to register as a builder with the commission; and
(3) the following warning conspicuously printed, stamped, or typed in a size equal to at least 10-point bold type or computer equivalent:
“IMPORTANT NOTICE: You and your contractor are responsible for meeting the terms and conditions of this contract. If you sign this contract and you fail to meet the terms and conditions of this contract, you may lose your legal ownership rights in your home. KNOW YOUR RIGHTS AND DUTIES UNDER THE LAW.”
Be careful because a violation of (1) – (3) above is a false, misleading, or deceptive act or practice, and is actionable in a public or private suit brought under the provisions of the Deceptive Trade Practices Act.
An additional contract requirement of Section 41.007 is that a provision of a contract that requires the parties to submit a dispute arising under the contract to binding arbitration must be conspicuously printed or typed in a size equal to at least 10-point bold type or the computer equivalent.
If you are a contractor and need assistance with assuring that your contracts comply with Texas law, give the attorneys at J Lowe Law a call today.