Last week I had the privilege of attending the Construction Financial Management Association Dallas/Ft Worth Chapter’s monthly membership education luncheon as a prospective member. The educational topic was Cybersecurity and the Construction Industry and presented in a panel format. The panelists were Jon Schildt, Vice President of Technology & Cyber Practice for Hub International Midwest Limited’s Professional and Executive Risk (ProEx) Group and Jim Harryman, CEO of Kinetic Technology Group, a leading IT and cybersecurity firm based in Dallas, Texas. Daniel Rutter of HUB International s ..read more

Last month, we delved into the fundamentals of zoning as they relate to developers and builders. Now, let’s take a deeper dive into specialized zoning topics that merit closer examination. What are legal nonconforming rights?  The legal concept is derived from Section 211.019 of the Texas Local Government Code which states that “[a] person using a property in a manner considered to be a nonconforming use as a result of the adoption of or change to a zoning regulation or boundary may continue to use the property in the same manner . . . .”  Put simply by the Texas Supreme Court, “[it ..read more

Broad form indemnities are common in Texas construction contracts, even though indemnifying someone for their own negligence is a tough pill to swallow.  In 2011, Texas passed a law limiting such clauses in construction contracts.  Since then, Texas courts have analyzed the statute only a handful of times. The Rule In a nutshell, the statute voids an indemnity provision in a construction contract if it requires the indemnitor to indemnify, defend, or hold harmless the indemnitee for a claim caused in whole or in part by that indemnitee’s own negligence. See Signature Indus ..read more

Many construction contracts contain some version of a “differing site conditions” clause. AIA’s A201 general conditions, as well as in the EJCDC equivalent, contains a changed site condition clause. It also appears in most state DOT specifications and federal government construction contracts. Generally, this provision provides for a change order (subject to procedural compliance) when the contractor encounters (i) subsurface or other concealed conditions that differ materially from the conditions indicated by the contract documents or (ii) unknown physical conditions of an unusual nature diff ..read more

According to a recent ConstructionDive.com article, construction job openings soared in January 2024 marking over a 40% increase from the same period in 2023. Essentially there were approximately 120,000 more construction job openings at the end of January 2024 than 2023. Quit rates have lowered but apparently layoffs have increased. Essentially, jobs are open and the industry remains on its quest to fill critically needed construction labor positions. As discussed in the article, economists believe the uptick in layoffs is due to effects of inclement seasonal weather and are temporary in ..read more

What is zoning and how does it work? In simple terms, zoning refers to a city’s ability to regulate property owners’ use of their land within its corporate boundaries. For instance, a city may prohibit commercial accessory uses within its residential districts, thereby prohibiting at-home businesses. Failing to comply with a city’s zoning regulations can result in fines of up to $2,000.00 per violation, per day, depending on the nature of the violation(s). Additionally, one would not be able to move forward with city platting or permitting absent proper zoning.  Importantly, Texas law pro ..read more

NASA’s Exploration Park development has taken another step forward.  The American Center for Manufacturing and Innovation (ACMI) and its ACMI Properties affiliate have agreed to lease 207 of the NASA development’s 240 acres.  ACMI’s development will be known as the Space Systems Campus and is intended for both commercial and space defense manufacturing.  ACMI joins Texas A&M and its Space Institute as tenants of Exploration Park.  The move aligns with NASA’s goal of attracting private investment and is a step towards bringing commercial manufacturing closer to space ope ..read more

Use this guide as a reference when filing lien and bond claim notices for the month of March. If you have any questions about the lien and bond claim process, don’t hesitate to reach out to any member of the Gray Reed Construction Practice Group. Lien and Bond Claim Notices and Filings Required by: March 15, 2024     Texas Property Code Chapter 53     Notice of Intent to Lien for Subs/Suppliers of All Tiers for Work/Materials Furnished During:   December 2023   Liens Filed by Original Contractors and Subs/Suppliers of All Tiers for Work/Materials Furnis ..read more

If an owner or general contractor fails to timely pay on a project, you may be entitled to prompt pay interest. Prompt payment acts are intended to deter late payments by general contractors and owners by enabling contractors and suppliers to pursue additional remedies including penalty interest, attorneys’ fees and suspension of performance. Texas Private Prompt Payment Act Chapter 28 of the Texas Property Code, commonly known as the Prompt Payment Act, requires the owner of a private project to pay the general contractor within 35 days of an invoice being submitted.  The general contrac ..read more

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