Procedural points to assure smoother business function
Disclosure in Texas Construction Contracts
General contractors, subcontractors, as well as property owners are often unaware of the state and federal laws that apply to construction contracts. The majority of these laws are designed to protect property owners and to ensure that contractors act in good faith.
Sometimes however, even a contractor that fully intends to treat a property owner fairly can get into trouble if they don’t use professionally drafted contracts that follow both federal and state-specific laws. Doing them “on your own,” or downloading boilerplate contracts from the web might not be the best course to take.
Before a construction contract is signed, Texas law requires a contractor to provide a two page construction contract disclaimer. Doing so is not difficult, however, it is a procedure that is easy to overlook.
Texas construction contracts also require several other construction contract disclosures. For example, a contractor must include a statement regarding the right to repair.
Because construction contracts are subject to both state and federal law, it’s important for general contractors and subcontractors to make sure they aren’t taking unnecessary risks with poorly drafted contracts. The best advice is to seek the assistance of qualified legal counsel to make sure you get it right from the beginning.