Your general contractor filed for bankruptcy before getting your project across the finish line. You and your project margins are in a tight spot. But not all hope is lost: with good legal guidance, a project team that is willing to work, and (unfortunately) more money, your project can move forward. Last week, I
Latest from Texas Construction Law Blog
They Filed Chapter 11, You File a Lien: Surviving Owner Bankruptcy in Construction
You’re halfway through a job, and the owner goes belly-up. No payments, just a bankruptcy notice and a bunch of unpaid invoices. Hopefully, this doesn’t sound familiar to you. But with the ever-evolving trade war this year, it wouldn’t hurt to have a plan (no pun intended) for owner bankruptcy. In this week’s blog post,
Tariff Troubles 2 – Administrative Boogaloo
The U.S. tariff landscape seems to change every day. On April 2, 2025, President Trump announced a 10% baseline tariff on foreign imports, with higher tariffs on nations that run trade surpluses with the United States. That same day, the U.S. Senate passed a bill to end the national emergency that President Trump is using
Heads in the Sand? Texas SB 1040/HB 3874
Introduced to the Texas Senate on January 31, 2025 by Senator Tan Parker, Senate Bill 1040 (and its House counterpart, House Bill 3874) attempts to add clarity to construction contracts and promote fairness in construction negotiations. If passed, this bill will require any document incorporated by reference in a construction contract to be provided to
Tariff Troubles
In February 2025, President Donald Trump enacted a series of tariffs, including a 25% levy on steel and aluminum imports, aiming to revitalize domestic production. More tariffs have been announced since then, and other countries like Canada and China are starting to implement retaliatory tariffs.The most immediate impact on the construction industry will be material
Does the Texas Prompt Payment Act (PPA) apply to out-of-state contracts?
Surprisingly, Texas appeals courts have not answered this question. The Texas Prompt Payment Act (“PPA”) is a law that provides (in relevant part):(a) If an owner or a person authorized to act on behalf of the owner receives a written payment request from a contractor for an amount that is allowed to the contractor under