Dallas Austin

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

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

What is the impact of granting a license to a property owner to use a set a schematic drawings?  The United States Court of Appeals for the Fifth Circuit recently answered this question in Loeb-Defever v. Mako, LLC. In Mako, Pauda Realty requested Loeb Architects, LLC to prepare a design for an assisted living facility in Conroe, Texas.  Pauda and Loeb subsequently entered into two separate service contracts each of which contained a limitation that schematics could not be used on other projects except by agreement in writing and with subsequent compensation to Loeb. After Loeb partially com

Are property owners allowed to testify about the cost of repairing their own property without other evidence?  The Dallas Court of Appeals recently placed some limitations in the so-called Property Owner Rule. In William Lisle and Smith-Lisle Holdings, Ltd. v. Do-Mo Joint Venture, a dispute arose between two commercial property owners when Lisle and SLH, a landscaping company, purchased the property next door to Do-Mo’s property which housed medical offices. After SLH bought the property, it removed the house from the property and began work to make improvements. The improvements consisted

Is a roofing contractor absolved of liability if the property owner allegedly fails to procure a proper builder’s risk insurance policy? The United States District Court for the Eastern District of Texas recently answered the question, no. In Taccoa, Ltd., v. North American Roofing Services, LLC, a warehouse owner, Taccoa, Ltd. filed suit against a number of defendants following damages its warehouse sustained in an August 2020 thunderstorm. Toccoa first entered a contract with North American Roofing Services (NAR) in January 2020 for the construction of a new roof on an existing warehouse.