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.