Required disclosures in Texas construction contracts

May 31, 2011

General contractors, subcontractors, and property owners are often unaware of the state and federal laws that apply to construction contracts. Most of these laws are designed to protect property owners and to ensure that contractors deal fairly with them. But even a contractor that intends to treat a property owner fairly can get into trouble if they don’t get professionally drafted contracts that follow federal and state-specific laws.

Before a construction contract is signed, Texas law requires a contractor to provide a two page construction contract disclaimer. Doing so is not difficult, however, it is a procedure that is easy to overlook.

Texas construction contracts also require several other construction contract disclosures. For example, a contractor must include a statement regarding the right to repair. Construction contracts for residential homes must also include a statement regarding a homeowner’s rights and risks. A contractor that fails to include these disclosures faces significant risks in court – up to triple damages.

Because construction contracts are subject to both state and federal law, it’s important for general contractors and subcontractors to make sure they aren’t taking unnecessary risks with poorly drafted contracts. James Blake is an Austin Business Lawyer who regularly advises contractors and property owners in construction law matters. To read more articles on Texas construction law, visit the Austin Business Lawyer Blog.

Topics: Legal, Blog Posts

James Blake

The Blake Law Firm, PLLC.

James Blake is a growth-oriented business attorney who strives to be a creative business partner, to identify value-add opportunities, and to crystallize the relationships, structures, and processes that will drive your commercial success. James Blake practices law in Texas and Hawaii, and has protected the interests of businesses across a broad range of industries, including technology, construction, service and retail, food and beverage, franchisors and franchisees, product manufacturers, and investors. His work experience encompasses commercial transactions, litigation, and advising business operations in the U.S., Africa, and Asia. James was an editor of Law Review at the University of Hawaii and conducted international commercial law research for the Institute of Asian Pacific Business Law. He served as the Official Reporter for the 2008 IAPBL China Enterprise Bankruptcy Law Symposium held in Hong Kong, and in the same year worked at a large firm in Singapore. James currently advises clients in international business and investment issues in addition serving his client’s legal and business needs in Hawaii and Texas. Currently based in Austin, Texas, James is an avid writer and enjoys speaking at business-law seminars in addition to his legal practice. In his spare time, James enjoys sculling and kayaking on Ladybird Lake, outdoor photography, and supporting visual and performing arts.
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