Construction Contract Tips Austin Texas. When it comes to construction contracts, these are documents that are subject to both state and federal laws. In the state of Texas, however, there are all kinds of rules that require certain clauses and disclosures in these contracts, with the same thing applying at the federal level as well. Violating laws involving these contracts can result in a construction company being forced to pay serious fines, as well as potentially falling victim to large lawsuits. Thankfully, there are ways in which these kinds of issues can be prevented.

Prior to a customer signing a construction contract, a Texas law requires that a two-page disclosure must be delivered. This applies to both new and existing structures. Additionally, state law also requires a specific statement in regards to the right to repair. If this notice isn’t included, a homeowner will be able to legally recover a total of $500 from a contractor. Furthermore, contractors can also find themselves at risk whenever they fail to include a required disclosure involving homeowners’ risks and rights within a construction contract. This is something that legally constitutes a false, deceptive, or misleading act and legally allows a homeowner to recover not only attorney’s fees, but also triple damages as well.

Construction Contract Tips Austin Texas. There are many contractors who have likely heard about the three-day cancellation rule, which enables customers to cancel any construction contract. On the other hand, many companies remain completely unaware that federal law actually extends this rule to a total of three years in the event that a construction contract doesn’t contain all of the right provisions. There is also another federal law that requires specific disclosures in contracts that involve either the installation or purchase of insulation, and failing to follow this law can result in an $11,000 fine.