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Texas Construction Contracts: Pay-When-Paid or Pay-If-Paid?

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There is a big difference between so-called “pay-when-paid” clauses and “pay-if-paid” clauses. Pay When Paid A “pay-when-paid” clause relates to the timing of payment, such that the subcontractor gets paid when the general contractor gets paid. The general contractor remains obligated to pay a subcontractor regardless of whether the general contractor is ultimately paid by the owner. If payment by …

No Expert Testimony Needed to Establish Date of Injury in Construction Defect Coverage Case

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The Dallas Court of Appeals, in Vines-Herrin Custom Holmes, LLC v. Great American Lloyds, No. 05-10-00007-CV, 2011 WL 6396473 (Tex. App.—Dallas Dec. 21, 2011, no pet. h.) handed down an opinion overturning a take-nothing judgment on behalf of an insurer of a construction company and remanding to the trial court for further proceedings.  In so doing, the court held that …

Construction Law Update: Liability of Texas Design Professionals Who Remain Engaged in Construction Observation and Contract Administration Work

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The Maxfields (“Owners”) contracted with Black & Vernooy Architects (“Architects”) and Nash Builders, Inc. (“Builders”) for the design and construction of a vacation home. Under the Owners’ contract with the Architects, the Architects were required to design the residence, to perform various post-design contract administration services, and to keep the Owners informed about the progress of the work—esp., to guard …