If you have a fixed sum agreement more than likely, the owner/developer is most concerned about your PROGRESSION and you’re being paid based on how much you’ve progressed on the job. So one has to wonder why so many contractors treat lump sum agreements,  like cost-plus agreements and inaccurately itemize what they’ve “spent” on labor…

It’s the kind of project a Texas contractor would love to be involved in. There’s a huge plant going up. The project is approved by all required government entities. The state governor endorses it and it appears to be backed by more money than the Dallas Cowboys! What’s not to love right? Well, unfortunately, all…

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…

Texas courts generally apply the Spearin doctrine that the owner implicitly warrants to the contractor the sufficiency of the drawings and specifications. See Shintech Inc. v. Group Constructors, Inc., 688 S.W.2d 144, 151 (Tex. App.—Houston [14th Dist.] 1985, no writ); see generally United States v. Spearin, 248 U.S. 132, 39 S. Ct. 59, 63 L. Ed….

The builder-vendor of a house impliedly warrants that the house was constructed in a good and workmanlike manner and is suitable for human habitation Humber v. Morton, 426 S.W.2d 554, 555 (Tex. 1968); Codner v. Arellano, 40 S.W.3d 666, 672 (Tex. App.—Austin 2001, no pet.) (implied warranty to perform services to repair or modify existing…

WARNING TO GENERAL CONTRACTORS! BE CAREFUL WITH YOUR CONTRACT July 9, 2014 “General Contractor’s Agreement To Perform In Good And Workmanlike Manner Is Not An Assumption Of Liability For Defective Work. FACTUAL BACKGROUND In 2008, a contractor entered an agreement to serve as general contractor to renovate and build additions to a school in Corpus…

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