RFI Blog

RFI Blog

Legal Insights and Best Practices for
Texas Construction Professionals & Government Contractors

Category Archives: Best Practices

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Taking Focus on the “Scope of Work”

Posted in Best Practices, Contract Negotiation, General Contractors, Subcontractors
  One of the most important aspects of any agreement is the scope of work to be performed.  All too often disputes arise between general contractors and their subcontractors concerning the scope of the subcontractor’s responsibilities after work has begun. It is not difficult to imagine a scenario where the project work has begun and the… Continue Reading

Hell Hath No Fury Like a County Clerk Scorned

Posted in Best Practices, General Contractors, Mechanic's Liens, Payment, Subcontractors
  After struggling to cobble together your mechanic’s lien affidavit, you’ve driven 150 miles to reach the county clerk’s office before close of business. Today is the filing deadline.  No worries, you made it!! But now you stand toe-to-toe and face-to-face with a clerk that refuses to record your claim.  WHAT NOW??? More often than… Continue Reading

When a Handshake is Not Enough – the Change Order

Posted in Best Practices, Change Orders, Contracting, Subcontractors
Any construction contract worth its salt includes provisions for modifying the agreement, either by agreement or by unilateral action.  The most common modifications increase or decrease the contract scope, contract dollar amount and time.  Commonly referred as a “change order”, when used correctly and consistently, this instrument works to avoid disputes when payment becomes due,… Continue Reading

Criminals in the Construction Industry – Texas’ Trust Fund Statute

Posted in Best Practices, General Contractors, Owners, Payment, Subcontractors
Do you know any criminals?  If you have worked in the construction industry for very long then the likely answer is, “Yes”!  I’m not talking about folks that you believe are cheats, scoundrels and liars.  Nope.  Instead, I’m talking about contractors, subcontractors and owners that misapply funds for construction projects received for the benefit of those… Continue Reading

When Owners Withhold Payment – Enforceability of Contingent Payment Clauses in Texas

Posted in Best Practices, Contract Negotiation, Payment
Who bears the risk when an owner refuses to pay the general contractor or experiences financial failure?  More than likely, the subcontractors whose agreements include a contingent payment clause.  Two types of payment clauses exist and both are enforceable.  “Pay-when-Paid” clauses and “Pay-if-Paid.”  Pay-when-paid clauses allow the general contractor to wait a reasonable time for… Continue Reading

Avoid Being Bitten by Spoliation

Posted in Best Practices, General Contractors, Owners, Subcontractors
  Don’t lose downstream claims correcting construction defects. Your project did not go well. Subcontractors performed poorly, the architect was impossible and delivery occurred late.  You were lucky to break even and glad to be finished.  A couple of years pass and the phone rings.  It’s the owner.  The project is now leaking and merchandise… Continue Reading