We’ve said it before and we’ll say it again: the construction contract is king. Nothing has more influence on how disputes are settled and whether or not disputes occur in the first place. At Cotney Law, we’ve dedicated ourselves to ensuring that contractors in the Lone Star State are always in the know when it comes to their contracts.
In this brief article, we discuss three disclosures required in Texas construction contracts. If you are ever concerned with the contents of your construction contracts, or the lack thereof, consult a Houston contractor attorney from Cotney Law for contract drafting and reviewing services.
Required Contract Disclosures
The following are just a few disclosures that must be included in your construction contracts. For a comprehensive list, consult the Houston contractor attorneys from Cotney Law.
1. The Disclaimer
Texas requires contractors to provide a two-page disclaimer with their construction contracts. These disclaimers generally contain boilerplate that is easy for a Houston contractor attorney to include. The oft-forgotten disclaimer is easy to overlook and may not seem like a big deal now, but like all other items on this list, failure to include a disclaimer could result in costly damages.
Related: What to Consider Before Signing
2. Right to Repair
Less than a couple of dozen states have right to repair laws allowing contractors a way to avoid costly construction defect disputes. Texas is one of them (Texas contractors actually just secured a huge victory with the passing of HB 1999, which allows contractors to inspect and repair defects on public projects). With your residential construction contracts, you must include a statement regarding the right to repair. However, that’s not the only disclosure that must be included for residential contracts.
3. Residential Disclosure Statement
General contractors aren’t usually required to give preliminary notice; however, a residential disclosure statement must be included in the contract for residential projects. This statement informs the owner of their rights as well as your rights as a contractor. Essentially, it ensures that everyone is on the same page. This disclosure can be found under § 53.255 of the Texas Property Code. With few exceptions, you are also required to furnish a list of subcontractors and suppliers as stipulated by § 53.256.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.