Month: November 2016

The Texas Residential Construction Liability Act in Three Sentences

texas residential construction liability

Chapter 27 of the Texas Property Code is the Texas Residential Construction Liability Act.

The RCLA applies to any action by a homeowner (and subsequent purchaser of a residence) against a contractor arising from a construction defect, except for claims of personal injury, survival, wrongful death, or damage to goods.

The RCLA imposes pre-lawsuit notice, inspection, and settlement procedures, limits contractors’ liability and damages in defined circumstances, and establishes legal-fee shifting for frivolous claims, among other things.

In our Law 101 posts, we define terms, phrases, or concepts with the goal of conveying core information in order to set the stage for more complex discussions.

Payment Bonds v. Performance Bonds

texas construction law payment bond performance bondSome construction projects must be bonded. This requirement may be imposed by contract, statute, or both.

A surety issues a payment bond to guarantee that people furnishing labor and materials on the project are paid for their work. Accordingly, payment bonds primarily benefit contractors.

A surety issues a performance bond to guarantee that the project will be completed in accordance with contract requirements. Consequently, performance bonds primarily benefit project owners.

In our Law 101 posts, we define terms, phrases, or concepts with the goal of conveying core information in order to set the stage for more complex discussions.