Legal News

Change orders can quickly become a source of contention on construction projects and are often the subject of major disputes. As a result, it is important for stakeholders to carefully draft and negotiate the change order and related provisions pre-contract......By: Porter Hedges LLP

On October 2, 2020, the Small Business Administration (SBA) published guidance on when SBA consent must be obtained before a PPP borrower undergoes a change of ownership. It not only covers changes in controlling ownership interests and certain asset sales but also could apply to redemptions of existing minority owners by PPP borrowers, and to buyouts of minority owners by other existing owners. There is potential for significant delay and disruption of deal structures. The new guidance could......

As COVID-19 continues to result in government shutdown orders, labor shortages, and increased lead times to acquire materials, project owners, contractors, and subcontractors may begin to make claims of “force majeure,” or may otherwise suspend or even terminate work. Often these notifications or directives can first happen over the phone --- a contractor tells an owner that there is a manpower shortage, or that they are held up by an inability to work on the project site because a local order...

The Texas Supreme Court has issued a ruling that significantly impacts arbitrations involving governmental entities, which include cities, counties, school districts, conservation districts, hospital organizations, and other political subdivisions....By: Porter Hedges LLP

While this coronavirus event grips the nation, contractors and subcontractors are asking whether this qualifies as a force majeure or changed condition event. We think it qualifies as both. When you bid and signed your contracts, if the force...By: Porter Hedges LLP

The Small Business Administration (SBA) has designated COVID-19 as a qualifying event for the provision of Economic Injury Disaster Loans to small businesses and private non-profits. As a result, on March 17, 2020, Governor Greg Abbott requested an...By: Porter Hedges LLP

The spread of COVID-19 has severely impacted our nation and economy. We are facing lockdowns, travel bans, and massive disruptions to day-to-day activities as authorities work to stop the spread of COVID-19. As the virus-related impacts spread,...By: Porter Hedges LLP

Subcontractors have long celebrated—and general contractors long feared—the Texas Construction Trust Fund Act, codified in Chapter 162 of the Texas Property Code. The Act, which is (ideally) construed broadly to primarily protect subcontractors,...By: Porter Hedges LLP

In a case critical to Texas contract and partnership law, on January 31 the Texas Supreme Court confirmed that parties can negate the formation of a partnership through their contractual language. The Court affirmed an appellate court ruling that...By: Porter Hedges LLP

If you are involved in the construction industry, you have probably heard of or dealt with mechanic’s liens. The majority of work performed on private Texas construction projects will fall under Chapter 53 of the Texas Property Code, to which...By: Porter Hedges LLP