Time is of the essence clauses are common in construction contracts and for good reason. This clause activates certain rights and remedies to various parties in a construction contract. Every contractor should be familiar with the importance of this clause. Watch to learn more.

You have to be careful when doing residential projects. First, residential jobs generally come with a higher risk of litigation because a great deal of protection is given to homeowners and consumers under the Deceptive Trade Practices Act. Secondly, in Texas, the Property Code requires that you jump through extra hoops to perfect a lien…

“Yea… some guy up and filed a lien out of nowhere. We’re probably just going to pay them and be done with it so that we can move on.” Unfortunately, I hear this on a weekly basis. In construction, liens are a regular part of doing business. Sometimes, subcontractors file invalid liens on projects and…

Most construction projects are either public or private in nature. When the government owns the property forming the basis of the project, the project is considered public and when a private individual or company owns the property, it’s considered a private project. The classification is generally most important in two contexts, remedies in the event…

In an earlier post I explained the difficulties subcontractors face when trying to protect themselves against non-payment. Difficulties in complying with The Texas Property Code make perfection difficult for subs. However, The Texas Construction Trust Fund Act does give some protection. According to the act, a contractor, subcontractor, or owner or an officer, director, or…

Any subcontractor who has been in business for quite some time has probably attempted to perfect an M&M lien. However the M&M perfection process is simply not subcontractor friendly and often times, subs miss perfection due to non-compliance with the statutes. There are many of examples of difficult situations where a subcontractor will have to comply…

With all the condominiums and high rises going up around Houston, it’s a bit surprising that there is very little discussion on the newest amendments to the Texas Property Code that effect condominium defect claims. If a condominium association is in Texas and has at least eight units it must comply with Chapter 82 of…

Whether you’re a prime contractor, subcontractor, owner, officer, director, or agent of a contractor, subcontractor, or owner who receives construction payments or who has control or direction of construction payments, you are a trustee under Tex. Prop. Code § 162.002. This means that you have a responsibility to correctly apply trust funds. Misapplication of Trust…

This article will be the first of a series of articles on the Statutory Mechanic’s Lien. We will discuss the process of filing and perfecting the lien under The Texas Property Code. We will also discuss some common errors that occur when filing and how those errors could result in major problems for your company….

If you’re a general contractor actively involved in any project, it is safe to assume that you have attempted to protect yourself from paying damages out of pocket in the event there is a problem with the project. However, as is the case with any kind of insurance, there are certain clauses that could leave…

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