Contingent Payment Clauses in Texas: Navigating the Ins and Outs
General contractors utilize subcontract agreements to protect their interests and shift risk downstream to subcontractors. They accomplish this end by including powerful contract clauses that provided little escape from harsh outcomes if the project does not unfold as planned. One such clause is the contingent payment clause, also known as “pay when paid” or “pay if paid” clauses, which obliges a subcontractor assume the risk of the owner’s failure to pay.
Cons of Arbitration
One of its biggest drawbacks of our court system is the lengthy resolution to disputes. Attorneys looking to bring about a speedy judgment for their clients have increasingly relied upon arbitration. But at what cost?
How to Remove a Lien on Your Home
A subcontractor or supplier who has not been paid for work done on your home may try to get payment by filing a legal document called a “lien.” Your home cannot be sold until the claim is paid. Follow these three steps if you discover a lien has been filed.
Filing a Bond Claim: Public vs. Privately Owned Property Rules
Filing a claim against a bond may offer a subcontractor protection against both privately and publicly incurred debts. However, there are different rules for filing a bond claim on public property versus privately-owned property.
Good Business: Limiting Your Personal Liability
One of the best tools to limit or avoid personal liability associated with running your business in Texas is to set up a corporation, limited liability company, or a similar entity. However, many business owners set up their business entity, open a bank account, and go about their “business as usual” without timely filing the required business franchise tax reports with the State of Texas.
Filing a Lien & Getting the Property Description Right
When you file a lien on a property, Texas Property Code 53.054 requires you to include “a description legally sufficient for identification, of the property sought to be charged with the lien.” But what does “legally sufficient for identification” really mean? Texas law has a history of leniency when it comes to validating property descriptions […]
Where There is a Will, There is a Way
It’s that time of year again. While December of each year is a festive time across the country, it is also a time to complete the items on your to-do list that oftentimes go on the back burner. Planning for the passing of your estate or end-of-life decisions to those you love should not be […]
The Five Ws of Mechanic’s Lien Filing That Everyone Should Know
If you’re in the construction business, you’ve more than likely come across a Mechanic’s Lien or Materialmen’s Lien. This can be a useful tool to help protect a builder or contractor’s interest in the project they are developing. If you get to a point in a project where a party hasn’t paid for labor or […]
After the Flood – Legal Issues for Homeowners and Builders to Consider
In the days following Hurricane Harvey, news agencies reported only about 80 percent of homeowners in the affected areas were covered by flood insurance.[1] As a result, uninsured flooded homeowners have sought other options to repair and replace their damaged property. In an effort to find alternative forms of compensation, some homeowners have attempted to […]
Performing Work for Hurricane Harvey Claims
Generally speaking, it is a good business practice to have all of the essential terms between the parties to be put into a written agreement before the work starts. But, in a situation such as the aftermath of a hurricane, that may not always be possible to do upfront. However, it is not too late […]