Perhaps the most under appreciated of all construction “players” are subcontractors. Subs perform the great majority of work on differing projects. Today’s General Contractor (GC) has evolved into a broker of sorts – securing the contract from the owner and finding subcontractors to complete the work. It goes without saying that the GC is in a superior bargaining position when it comes time to contracting with Subs. There is a simple reason for this: GCs have the work and Subs want it. This disparate bargaining power, coupled with the economy, has forced Subs to regularly accept the terms of a bad contract. Many of these contracts will shift significant risk to the subcontractors requiring that they accept responsibility for aspects of construction that are outside of their control.
Subcontractor Agreements
Fortunately, there are various ways to protect the rights and interests of subcontractors. First off, having an attorney review and negotiate a subcontract agreement can limit exposure and risk. A GC will sometimes relent and allow for reasonable modifications to a subcontract agreement if properly presented by counsel for the subcontractor. The goal is to limit the scope of indemnification and ensure that the Sub is accepting responsibility for its work and not the work of all other trades.
Prompt Payment
Fortunately, the Legislature has not forgotten the often under appreciated subcontractors. Chapter 28 of the Texas Property Code deals with a GC’s payment to subcontractors. This statute requires a GC who receives payment from an owner to pay to a Sub within seven days “the portion of the owner’s payment, including interest, if any, that is attributable to work properly performed under the contract by that subcontractor.” This statute also allows for interest on unpaid amounts at 1.5% each month beginning on the date the payment becomes due. A court may award attorney’s fees and cost to subcontractor who brings an action under this statute.
The purchase of real estate is often a well-coordinated endeavor that involves attorneys, surveyors, appraisers, and real estate agents. Boundary lines are confirmed and title to property is verified. With so many experts involved in the transaction it is hard to imagine anything going wrong. Unfortunately, disputes involving real property happen all the time.
Real property disputes be as basic as a disagreement involving a property line to more complex issues dealing with multiple claims of ownership to a particular piece of property. Whatever the issue may be, you need a well-designed plan that strives for resolution in the most cost efficient manner possible.
Below are some of the real estate litigation matters that we handle:
If you are faced with a dispute involving real estate, contact the Law Office of Ryan C. Solis today to schedule a consultation to discuss your real estate matter.
