Builders are generally able to resolve disagreements with homeowners over a construction defect claim, but there are some things you should know to protect yourself. When a resolution cannot be reached, the Residential Construction Liability Act (RCLA), which is found in Chapter 27 of the Texas Property Code, governs such claims. Because of the protections afforded by […]
No insurance policy in the construction industry is more discussed – and cussed – than the infamous Commercial General Liability (“CGL”) policy. Unfortunately, many people do not have a good working understanding of the CGL policy or options that would provide more protection. As a result, a builder may pay for a loss that could […]
Construction insurance contracts are a must as construction projects are notoriously risky endeavors. In order to cover these risks, the parties usually employ the following types of insurance coverage: builder’s risk, commercial general liability, umbrella, contractor’s pollution, auto, and workers’ compensation/employer’s liability. Each insurance type has gaps, but often there are ways of modifying the […]
The construction industry has used arbitration as the primary method for resolving disputes for many years. Builders routinely include a well-worn arbitration provision in their contracts. When disputes occur, however, builders are often surprised at certain limitations of the arbitration process. Therefore, it is worth giving that old arbitration clause a second thought and seeing […]
A new construction project springs financial hope for all parties involved. Unfortunately, if the owner fails to pay the general contractor as expected, that hope is quickly replaced by financial anxiety. In these situations, the general contractor is faced with the dilemma of “financing” the project by paying out-of-pocket, or incurring project-damaging problems with labor […]
Once an owner discovers there is a defect or property damage to its project caused by the general contractor or one of its subcontractors, the owner will want to know what damages it may recover. While a full discussion of damages in a construction dispute is too in-depth, the following will show the general category […]
Notices, such as notices of delays, changed conditions, objections to payment applications, and claims, can be required for many aspects of a construction project. However, provisions in construction contracts sometimes require notices to be issued in a relatively short time frame. From this arises the question: does a claim die or not die if a […]
If a construction dispute arises, where will the lawsuit or arbitration take place? The answer to that question is not always clear–even if stated in the contract. There is a construction forum statute in Texas that allows contractors, engineers, and architects who are working on Texas construction projects to insist any disputes related to that […]