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In footnote 71 of the titular construction law case Zachry Construction Corp. v. Port of Houston Authority of Harris County, which primarily focused on the enforceability of no damages for delays clauses, the Texas Supreme Court wrote: “Delay damages are consequential damages.” The Court then left it at that, with no more discussion or analysis of why it considered delay damages to be consequential damages. Therefore, whether or not delay damages are actually consequential damages or are in fact direct damages is still less than clear. There are arguments going in both directions and given

What constitutes “property damage” that would invoke an insurer’s obligation to indemnify under a commercial general liability (CGL) insurance policy? In TIG Ins. Co. v. Woodsboro Farmers Cooperative, the 5th Circuit for the U.S. Court of Appeals, looking to the Texas Supreme Court opinions in U.S. Metals and Lamar Homes, provided some guidance in construction defect disputes. Woodsboro Farmers Cooperative (Woodsboro) contracted with E.F. Erwin, Inc. (Erwin) to construct two, 105-foot diameter grain silos. Erwin hired a subcontractor, AJ Constructors, Inc. (AJC), to construct the silo

Artificial intelligence has made large inroads into various aspects of construction management, but has seemingly made less progress with on-site quality assurance and control measures. What research is being conducted on finding non-conformities or construction defects in real-time to avoid expensive, protected litigation after final completion? We take a deep dive. Reinforcing steel does not scream tech or AI, yet it has received a considerable amount of attention in recent research. To understand why, consider some of the factors and issues concerning installation of reinforcing steel. Stee

Surety bonds are an important cog in the construction industry machine, but a topic rife with complexities. Put plainly, a surety bond, whether a payment bond, performance bond, release of lien bond, or appeal bond, generally refers to a three-party relationship that includes a (1) principal (who is purchasing the surety bond to make sure of a performance of an obligation); (2) obligee (who is the party requiring or requesting the bond); and (3) the surety (who is issuing the bond, guaranteeing the principal’s obligations/performance, and if the principal fails to perform, step in to fulfill

Although property owners’ associations maintain a large amount of control over the choices homeowners make for their property and the structures owners build on their property, the Texas Legislature recently limited that control. On June 15, 2021, Texas Property Code §202.023 came into effect. This statute limits the power of property owners’ associations to prevent owners from building or installing security measures on their property. Specifically, the statute states: A property owners’ association may not adopt or enforce a restrictive covenant that prevents a property owner from