Commercial Construction

Commercial construction projects rarely conclude without complications. Even well-planned and carefully managed projects often run into disputes that can lead to costly delays or payment issues. These disputes frequently result in legal action if not promptly addressed. As experienced commercial construction attorneys, we have represented contractors, subcontractors, property owners, developers, architects, engineers, and material suppliers across Texas in all types of construction disputes.

The most common commercial construction disputes involve delayed performance, defective design or workmanship, non-payment issues, and disagreements related to change orders and extra work. Each dispute type carries its own complexities and legal implications, making specialized legal representation critical for effectively resolving these matters.

Timely performance of contractual obligations is fundamental in commercial construction contracts. Both owners and contractors have obligations that must be met within the timelines specified in the contract. Property owners are typically responsible for securing permits, ensuring site accessibility, selecting and providing materials, responding promptly to requests for information, and approving or rejecting change orders. Contractors and subcontractors must mobilize their workforce efficiently, coordinate subcontractors effectively, manage project timelines, order and deliver materials, and meet established deadlines.

When either party fails to fulfill these responsibilities, the resulting delays can lead to significant financial consequences. Contracts often specify the procedure for addressing delays, typically requiring the aggrieved party to issue a formal Notice of Default, allowing the defaulting party an opportunity to correct the issue. If unresolved, the non-defaulting party may terminate the contract and pursue damages.

Damages from delays can vary significantly. Owners may claim lost business revenue, increased financing costs, additional rent payments, or other expenses associated with the delayed completion of the project. Contractors, on the other hand, often seek compensation for increased overhead expenses, lost productivity, additional labor costs, and extended equipment rental fees. Our attorneys thoroughly analyze the relevant provisions to determine their enforceability and effectively advocate for our clients’ interests.

Construction projects often involve multiple professionals, including architects, engineers, and various contractors. Defects in design or workmanship can arise at any stage of the construction process, potentially resulting in extensive repairs, significant financial losses, and lengthy delays. Architects and engineers owe clients a professional duty to adhere to recognized standards. When their designs fail to meet these standards, they may be held liable. Similarly, contractors must perform their work in a manner consistent with industry practices and project specifications. A breach of any of these obligations can lead to litigation.

Addressing construction defects usually involves careful examination of contracts, thorough inspections by independent construction professionals, and obtaining estimates for necessary repairs. Texas imposes strict statutes of limitation, typically two to four years from the discovery of the defect. Our firm carefully navigates these procedural and substantive requirements, protecting your rights and interests.

Payment disputes remain among the most frequent sources of commercial construction litigation. Under the Texas Prompt Payment Act, contractors must be paid within a clearly defined timeframe. Violations of this Act can lead to significant penalties.

Commercial construction contracts often contain “paid-if-paid” or “paid-when-paid” clauses designed to shift payment risk from the general contractor to subcontractors. While a valid paid-if-paid clause permanently absolves the contractor of payment obligations if the owner does not pay, a paid-when-paid provision simply delays the payment obligation. Texas courts scrutinize these provisions carefully. We regularly assess these clauses, advising clients on enforceability, ensuring they either collect money owed or effectively defend against unjustified claims.

Disputes regarding change orders or extra work frequently arise during commercial construction projects. Although most contracts contain clear provisions regarding the execution of change orders these formalities are often overlooked, creating ambiguity and disagreements.

Texas courts recognize certain exceptions when written change orders are not strictly followed, particularly if parties repeatedly waived the requirement through their conduct during the project. If you encounter disputes over unapproved change orders or extra work, our attorneys carefully analyze the project documentation, communications, and course of dealing to establish your rights clearly and decisively.

Our extensive experience in commercial construction litigation gives us a unique perspective. We understand the construction industry, the procedural nuances of Texas law, and the strategies necessary to achieve favorable outcomes for our clients. Whether you’re facing an immediate dispute or anticipating potential conflicts, early legal consultation helps protect your interests and positions you for the best possible resolution.

If you’re involved in a commercial construction dispute or anticipate potential issues, contact us immediately. Our attorneys will promptly review your matter, clearly explain your rights and obligations, and recommend effective legal strategies.

Case Law Highlights – Commercial Construction Litigation

Complex infrastructure and commercial buildouts often trigger disputes over delay, nonpayment, or scope changes. Texas courts have repeatedly examined these high-stakes issues, and several landmark cases help define how construction contracts are interpreted and enforced. Below are three key cases that every commercial contractor and owner should understand.

Zachry Construction Corp. v. Port of Houston Authority, 449 S.W.3d 98 (Tex. 2014)

This Texas Supreme Court case is significant for its discussion of delay damages in public projects. Zachry was hired to build wharf extensions at the Port of Houston. When the Port prohibited Zachry from using a key construction method, Zachry suffered significant delays and associated costs. The Port relied on a no damages for delay clause in the contract to deny responsibility.

The Court held that such clauses do not protect an owner who actively interferes with a contractor’s work. Because the Port’s obstruction was intentional and not reasonably contemplated at contract signing, the clause was unenforceable. This case remains critical for contractors seeking damages from owners who materially disrupt performance, even if delay waivers are in the contract.

JLB  Builders,  L.L.C.  v. Hernandez, 622  S.W. 3d 860 (Tex.  2021) 

This case involved a suit against the general contractor (GC) for site‑injury negligence. The Texas Supreme Court rendered a take‑nothing judgment for the GC, holding it owed no duty of care because it neither exercised actual control over the means, methods, or details of the subcontractor’s work nor held a contractual right to such control.

General supervisory powers, setting schedules, inspecting for safety, requiring harnesses, or coordinating cranes, do not create a duty; only control that dictates the specific, injury‑producing work will suffice. With no duty, the plaintiff’s breach and causation theories collapsed, and the Court reversed the court of appeals’ remand for trial. On Texas jobsites, a GC avoids tort liability for a subcontractor’s employees unless it wields hands‑on control of the dangerous task itself.