LAW APPLICABLE TO CERTAIN CONSTRUCTION CONTRACTS

Tex. BUS. & COM Code ch. 272
in effect

Tex. BUS. & COM Code § 272.0001. DEFINITION.

In this chapter, "construction contract" means a contract, subcontract, or agreement entered into or made by an owner, architect, engineer, contractor, construction manager, subcontractor, supplier, or material or equipment lessor for the design, construction, alteration, renovation, remodeling, or repair of, or for the furnishing of material or equipment for, a building, structure, appurtenance, or other improvement to or on public or private real property, including moving, demolition, and excavation connected with the real property. The term includes an agreement to which an architect, engineer, or contractor and an owner's lender are parties regarding an assignment of the construction contract or other modifications thereto. Added by Acts 2017, 85th Leg., R.S., Ch. 580 (S.B. 807 ), Sec. 2, eff. September 1, 2017.

Tex. BUS. & COM Code § 272.001. CERTAIN CONTRACT PROVISIONS VOID.

(a) This section applies only to a construction contract concerning real property located in this state. (b) If a construction contract or an agreement collateral to or affecting the construction contract contains a provision making the contract or agreement or any conflict arising under the contract or agreement subject to another state's law, litigation in the courts of another state, or arbitration in another state, that provision is void as against public policy. (c) To the extent that a venue provision in a contract is void under Subsection (b), unless the parties stipulate to another venue after the dispute arises, an action arising out of the contract shall be brought only in this state in the county in which the property that is the subject of the litigation is located. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278 ), Sec. 2.01, eff. April 1, 2009.

Tex. BUS. & COM Code § 272.002. INAPPLICABILITY OF CHAPTER.

This chapter does not apply to a construction contract that: (1) is a partnership agreement or other agreement governing an entity or trust; (2) provides for a loan or other extension of credit and the party promising to perform the work that is the subject of the construction contract is doing so as part of the party's agreements with the lender or other person who extends credit; or (3) is for the management of real property or improvements and the obligation to perform the work that is the subject of the construction contract is part of that management. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278 ), Sec. 2.01, eff. April 1, 2009.
Source: TX Statutes (Official Site)URL: https://statutes.capitol.texas.gov/Fetched: 6/28/2026