Liability, Lien, Prime Contract

Top Five Construction Contract Modifications to Comply with Texas Law

Texas law has certain peculiarities which must be followed when a project is located in Texas.  To avoid surprises and unanticipated liability on construction projects, the parties should modify contracts consistent with Texas law—or at least be aware of the limitations that are in place due to certain Texas statutes.  While there are many changes …

Flow-down, Prime Contract, Subcontractor

Subcontractor Negotiating Tips for AIA Documents: Part 1

What should a Subcontractor do when a General Contractor presents, to the Subcontractor, the 401A-2017 Standard Form of Agreement Between Contractor and Subcontractor (“A401”)?  While some provisions in the A401 are favorable to the Subcontractor, others are not.  This multi-part series explores some of the ways a Subcontractor can better: (i) understand its rights and …

Defects, Prime Contract, Warranty

Call-Back Periods in Call-Back Warranties – the Confusion Surrounding Their Effect on Other Warranties in Construction Contracts

Commercial construction contracts between owners and contractors, such as the form AIA Document A201 contract, often include various express warranties whereby the contractor warrants its work on the project to the owner. Among those express warranties are the more common warranties that: (i) the materials and equipment provided by the contractor will be new and …

Delay Claims, Disruption Claims, Prime Contract, Subcontract

Hurricane Season and Disaster Preparedness: Part 2 – Insuring the Risk of a Hurricane on a Construction Project

As described by my colleague Sean McChristian in Part 1 of this two-part blog series, planning for hurricane season in Texas is a critical part of mitigating risk in the construction industry. In addition to reviewing force majeure provisions, owners and contractors need to have an understanding of the insurance available to cover property damage …

Delay Claims, Disruption Claims, Prime Contract, Subcontract

Hurricane Season and Disaster Preparedness: Part 1 – Review Your Construction Contracts Now, Not After the Storm

The Gulf Coast hurricane season runs from June 1st to November 30th each year. Because this is a known risk, many businesses prepare emergency response plans to mitigate risks to persons and property, but many of those same businesses are not prepared to mitigate economic risks arising from ongoing construction projects. As we approach the …

Flow-down, Liability, Prime Contract, Subcontract, Subcontractor

It’s a Flow-Down, Not a Flow-Up

Subcontracts between a general contractor and subcontractor often contain a flow-down provision stating that the terms and conditions in the owner/contractor agreement (the “Prime Contract”) are also binding on the subcontractor—making the subcontractor obligated to provisions in the Prime Contract—thus begging the question: if the subcontractor is required to assume the general contractor’s obligations, does …