Price escalation clauses have never been more important than in 2021! Recent weeks have shown a decrease in futures trading for the lumber market. Nevertheless, a downward trend in pricing remains weeks to months away. During this time, builders must still write contracts and sell homes. Questions looming over contracts include: Have we reached the […]
A Mechanic’s Lien Attorney helps navigate the complex world of lien laws. Mechanic’s Liens can be a valuable tool to ensure protections for contractors, sub-contractors, and property owners. However, when poorly written, mechanic’s liens can create disputes. This can lead to project delays, lawsuits, lost wages, and deferred payments. Mechanic’s Lien Attorneys Can Help Write […]
Many construction contract prices include amounts designated as an allowance or a contingency. Too often, the parties’ misunderstanding of what those designations mean causes disputes. To reduce those disputes, it is not only crucial that the construction contract clearly defines these classifications of costs, but that the parties also have a good understanding of the […]
A builder is required to navigate many complex areas of the law while conducting its business. Unfortunately, if the builder fails to properly comply, the penalties can be harsh. For example, in the employment law area, Texas requires an employer to obtain and provide certain information to a new employee. Some of the required new […]
To work on governmental or larger private projects, a builder will need to obtain construction bonds. While virtually all governmental construction projects require bonds, some private projects also require bonds. When a builder seeks to expand into these areas, it can be intimidating and confusing. There are many types of construction bonds, with each type serving a particular purpose. Builders are faced with […]
The current pandemic has already had a significant impact on the construction industry. The general state of the construction industry in Texas is that while construction projects are generally exempt from the business restrictions found in emergency declarations, the COVID-19 crisis has caused significant problems in areas such as financing and the availability of laborers […]
Builders must be careful with money received from owners and keep good financial records on each project. Chapter 162 of the Texas Property Code, commonly referred to as the Texas Trust Fund Act (Act), is intended to protect those furnishing labor or materials for the construction or repair of property by declaring that funds are […]
Texas builders can be criminally liable for failing to comply with financial bookkeeping requirements and misusing construction funds paid by the owner. While many district attorney offices are reluctant to prosecute construction industry fraud, some DA offices will seek criminal prosecution in egregious circumstances. As a result, a builder needs to be aware of what […]
Having the right agreement in place is paramount in any project. Having the wrong agreement in place or an agreement with incorrect or insufficient information can cost companies millions. Many construction projects require builders to tap into the large array of contracts housed by the American Institute of Architects (AIA). The size of the project can determine which AIA documents are relevant and […]
In our previous article, we discussed the basic concepts of sales tax law in construction and how different scenarios in your projects might affect the collection of sales tax. This article will explain a few more concepts and delve into what is subject to sales tax in construction and which party is responsible for payment. […]