September 09, 2010
Home | About Construction Contract Writer | Buy It Now | Try It Now
<< Back to U.S. Map
Penalties for using an illegal construction contract in Texas:
  • Texas Property Code § 53.255 requires that contractors deliver a 2-page disclosure statement before the contract is signed.
  • Texas Property Code § 41.007(a) requires a notice in contracts for building or remodeling a residential property that qualifies as a homestead. Failure to include this notice constitutes a false, misleading, or deceptive act or practice under § 17.46 of the Texas Business and Commerce Code. The penalty is treble the amount of actual damages plus attorney fees plus costs and prejudgment interest on actual damages.
  • The Residential Construction Liability Act (Texas Property Code § 27.001 to 27.007) gives an owner the right to recover $500 from a contractor if the contract omits a specific statement.
  • Failure to make federal truth in lending disclosures requires restitution of the overcharge.
  • Failure to include the disclosures required by 12 Code of Federal Regulations § 226.15 extends the right of rescission to three years (rather than three days).
  • Omitting insulation disclosures required by 16 Code of Federal Regulation § 460 can result in an $11,000 fine.
  • Sunset of the TRCCA requires changes in your residential contracts. Texas courts will enforce an implied warranty rather than the statutory TRCCA warranty. Notices and disclosures required by former § 420.001 (registration), § 420.002 (registration number), § 420.003 (arbitration) and dispute resolution (§ 426) are now obsolete. But the Right to Repair Notice in Texas Property Code § 27.007 must now appear in your contracts because the exemption in Texas Property Code § 27.007(c) no longer applies.
The contracts linked below will help Texas contractors avoid these penalties by complying with state and federal law.
The contracts linked below also comply with current Texas and federal court decisions.

Texas Construction Contracts Available Now
Title Bias Contract Type Page Length
TX Commercial Construction I Light bias in favor of the contractor Prime 37
TX Commercial Construction II Light bias in favor of the owner. Prime 16
TX Commercial Repair Neutral. Prime 21
TX Commercial Subcontract I Light bias in favor of the subcontractor. Subcontract 34
TX Commercial Subcontract II Light bias in favor of the contractor. Subcontract 17
TX Custom Home I Light bias in favor of the contractor. Prime 23
TX Custom Home II Light bias in favor of the owner. Prime 30
TX Home Improvement I Moderate bias in favor of the contractor. Prime 27
TX Home Improvement II Moderately favors the owner. Prime 32
TX Home Repair I Heavy bias in favor of the contractor. Prime 14
TX Home Repair II Heavy bias in favor of the owner. Prime 21
TX Pool Neutral. Prime 21
TX Public Works Subcontract Moderate bias in favor of the contractor. Subcontract 36
TX Residential Subcontract I Light bias in favor of the subcontractor. Subcontract 15
TX Residential Subcontract II Light bias in favor of the contractor. Subcontract 21
TX Tenant Improvement Neutral. Prime 16
©2010 Craftsman Book Company