Construction Law & Construction Contract Agreements for Construction Project Security
Construction contracts can be a ticking time bomb for real estate owners, developers, architects, contractors, and subcontractors if they are unaware of construction law. Texas construction contracts are regulated by both federal and Texas construction law. Failure to follow federal and Texas construction contract law puts contractors at risk. Similarly, real estate owners, developers, architects, contractors, and subcontractors should consult with a construction lawyer to understand how construction law interacts with construction contracts and subcontractor contracts to avoid unpleasant construction contract surprises.
Construction Contract Issues for Real Estate Developers
Real estate owners and real estate developers’ primary goals focus on getting high-quality work, completing construction projects on schedule, and getting a good price on construction contracts. To achieve this with your construction contract, it’s important to:
• Clearly define the scope of construction project detailed specifications
• Reduce redundancy of duties for the architect, engineer, contractor and subcontractors
• Create and enforce meaningful construction contract timelines and milestones
• Limit liability in your construction contract, and provide liquidated damages for delays
For other ways to reduce the cost of construction contracts, read the article I wrote for the Business Bank of Texas, Five Ways to Prevent Excessive Costs in Your Construction Project.
Construction Contract Issues for Contractors & Sub-Contractors
Construction contractors and subcontractors must be keenly aware of federal and Texas construction law, otherwise, their construction contracts may result in liability for huge penalties. It’s also important to get high quality construction contracts drafted by a construction lawyer, because standard construction contracts found online, or from the American Institute of Architects (AIA) generally do not protect you in the specifics of your situation or your state’s construction law. Here are some important construction contract issues to consider:
• Limiting general contractor’s liability for subcontractors’ work
• Indemnity from subcontractors and “additional insured” coverage
• Provisions for costs of involuntary stopping project & removing equipment
• Limiting subcontractors’ liability for defects unrelated to subcontractors’ work
• Dispute resolution mechanisms and legal fees
Consult with a construction lawyer to get reliable advice regarding you construction contract. Our Austin law firm regularly advises clients in construction law matters. Call today to get a free consultation with a construction lawyer.
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