Texas Construction Law & Breach of Contract
A breach of contract occurs when someone does not do what they are contractually required to do without legally valid justifications, according to "Smith, Currie & Hancock's Common Sense Construction Law." Common breaches of construction contracts include failure to complete projects or not completing work on time. Under Texas law, breaches of construction contracts may result in money damages, liquidated damages, or other compensation being awarded to plaintiffs.
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Implied Breaches
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Implied breaches occur when the construction firm is prevented from completing their contractual obligations. For example, implied breaches occur when a buyer denies the contractor access to the site or provides incomplete plans. This can also occur if the necessary permits are not received, preventing the construction project from being insurable.
Contractors
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Contracts are breached when construction projects are not built according to plan. When a construction firm hires subcontractors, the firm is contractually obligated to ensure their contractors perform work to the contract's terms. Construction contracts are also breached when construction firms do not pay their suppliers if that was the construction firm's obligation.
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Consequences
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When a construction contract is breached, the homeowner can rescind the contract, receiving the contract earnest money. The homeowner can also file suit for damages to force the construction firm to complete the project.
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References
- "Modern Real Estate Practice in Texas"; Cheryl Peat Nance; 2003
- "Smith, Currie & Hancock's Common Sense Construction Law"; Thomas Kelleher; 2009
- "Texas Real Estate"; Charles J. Jacobus; 2007
- "Texas Business Law"; Don Alan Evans; 1995
- "Legal Aspects of Architecture, Engineering and the Construction Process"; Justin Sweet, Marc Schneier; 2008
Resources
- Photo Credit Hard working construction worker at a construction scene. image by Andy Dean from Fotolia.com
