Dallas Gerstle Snelson, LLP Austin

Delivering quality construction for a quality lifestyle

Broadening of Davis-Bacon Act Requirements

On October 23, 2023, a final rule regarding calculation of prevailing wage rates for federal contracting work took effect.  Almost immediately afterwards, two lawsuits were filed in Texas to stop enforcement of the rule.  Why has so much attention been paid to the final rule and how does the rule potentially impact you? The Associated Builders and Contractors (“ABC”) and Associated General Contractors (“AGC”) of America recently filed suit in the Eastern District of Texas against the U.S. Department of Labor (“DOL”) to prevent enforcement of the DOL’s final rule “Updating of
During the uprooting of trees and deforestation, a tractor is working the process to prepare the land for new house construction.

$135 Million Verdict Reduced to $5 Million

As an example of how trial and appellate courts are reigning in nuclear verdicts, a federal judge in Georgia recently reduced a $135 million jury verdict to a $5 million judgment.  What was the court’s rationale and how might it impact other nuclear verdicts in other states? Shaun and Amie Harris sued Westwood Professional Services Inc. (Westwood), Silicon Ranch Corporation (SLC), Infrastructure and Energy Alternatives Inc. (IEA), and IEA Constructors, LLC (IEA Constructors), asserting claims for nuisance, trespass, and negligence for damage to their land. The Harrises alleged that SLC’s
Police officer using radio to call for backup

Property Damage Not Compensable

Is a city liable for destroying a private residence in the process of releasing a hostage and preventing her captor from inflicting harm to others?  Citing case law from 1788, the United States Court of Appeals for the Fifth Circuit recently held, no. On July 25, 2020, Deanna Cook, was staying at house of her mother, Vicki Baker, in McKinney, Texas, preparing the house for sale.  Baker’s dog was also present at the home. That morning, Cook saw a Facebook post that Wesley Little was on the run with a 15-year-old female “runaway.” Cook recognized Little because he has worked on Baker’s
Unrecognisable Engineers on construction site, high angle view of employees in construction industry

Opting Out of Verbal Change Orders

On September 23, 2023, a new statute came into effect that will impact general contractors and subcontractors related to a contractor’s right to stop work in the absence of a written change order.  Under Texas Property Code 28.0091, a contractor can decide not to follow an owners or contractor’s construction directive, if: 1.    the contractor or subcontractor has not received a written, fully executed change order for the owner-directed additional work; and 2.    the aggregate actual or anticipated value of the additional work plus any previous owner-directed additional work for whic
Insurance, Puzzle concept.

Hidden Sublimits on CGL Policies

Commercial General Liability (“CGL”) insurance policies are the backbone to any contractor’s risk management plan.  One endorsement with a significantly reduced sublimit that is finding its way into more CGL policies issued in Texas is worth a closer look and careful monitoring. Several CGL insurers have begun including endorsements that make coverage subject to having lower tier subcontractors fulfill certain insurance requirements.  In one such endorsement that we recently reviewed for a general contractor, the following subcontractor insurance requirements were listed as conditions