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Although the changes to Chapter 53 of the Texas Property Code, the statute governing Mechanic’s Liens in Texas, went into effect on January 1, 2022, questions still abound regarding the rights and responsibilities of project consultants on construction projects, i.e. architects, engineers, and the like. Below is primer on the changes to Chapter 53 and how they affect these specific individuals as well as a brief discussion on the changes to statutory retainage and lien law. For starters, Section 53.021 removes the requirement that an architect, engineer or surveyor provide services “under

The Department of Labor’s (DOL) 2024 rule regarding the classification of employees/independent contractors recently took effect on March 11, 2024. The rule officially repeals the DOL’s 2021 Independent Contractor Status Rule and returns to a “totality of the circumstances” approach. The Fair Labor Standards Act (FLSA) establishes minimum standards of employment such as minimum wage, overtime pay, record keeping, and youth employment. These standards extend to employers and employees as defined by the FLSA. However, the FLSA’s standards do not extend to independent contractors. Thus,

Is a worksite accident that occurred during the construction of a stormwater detention vault excluded from coverage by a residential construction exclusion in a commercial general liability policy?  A Washington State court recently answered, yes. In Evanston Insurance Co. v. NW Classic Builders, LLC, Felipe Flores was injured while constructing a stormwater detention vault for a new residential subdivision in Sammimish, Washington. His employer, ARH & Associates, contracted with NW Classic Builders, the general contractor.  Flores sued NW Classic Builders for failing to provide a safe w

With tighter terms on construction loans and permanent financing, payment claims in the construction arena have increased. Noticeable during this uptick are assertions of violations of the Texas Construction Trust Fund Act. The Act is found in Chapter 162 of the Texas Property Code and creates overarching rules for all real property construction projects, with one applying specifically to residential construction over $5,000. The Construction Trust Fund Act classifies construction payments made to a contractor or subcontractor or one of their officers, directors, agents under a construction co

In late December 2023, the Federal Acquisition Rules were amended to require project labor agreements (PLA) in all federal projects with an estimated total construction cost of $35 million or more.  Will this new rule enhance or impede competition on large scale construction projects, and will it moderate or escalate labor costs?  The battle lines have been drawn, but the questions remain unanswered. Under FAR 22.503, federal agencies must require use of PLAs for contractors and subcontractors engaged in construction on the large scale projects unless an exception applies. The exceptions, wh