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…

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…

FUNDAMENTAL CONTRACTOR PROTECTION UNDER THE TEXAS CONSTITUTION In Texas, Article XVI, Section 37 of the Texas Constitution reads as follows: “Mechanics, artisans and material men, of every class, shall have a lien upon the buildings and articles made or repaired by them for the value of their labor done thereon, or material furnished therefore…” WHAT…

Time and time again I hear small business owners say that they cannot afford a lawyer. They usually follow that statement with something like “Hopefully, I’ll never need one”. This is simply a HUGE mistake and a bad business practice. Would you invest 50% of your companies earnings in the stock market but wait until…

Zachry Constr. Corp. v. Port of Houston Auth. Limits On Contractual Freedom In Construction Generally speaking, as long as your contract isn’t illegal or unconscionable, courts have a tendency to allow parties to enter into agreements at their own risk. Courts reason that any mitigation of risk can and should be negotiated by the parties…

The LAW Essentially, the economic loss rule states that with regard to unintentional torts such as negligence, and negligent misrepresentation, there can be no recovery for the plaintiff unless the plaintiff suffers some form of physical injury. See LAN/STV v. Martin K. Eby Const. Co., Inc., 11-0810, 2014 WL 2789097 (Tex. June 20, 2014). Purely…

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