Houston Construction Law Attorneys

Protecting Your Rights in Construction Disputes, Contract Negotiations & Payment Claims

Construction projects in Texas involve complex contracts, strict deadlines, and coordination among multiple parties – creating significant risk for disputes over payment, defects, delays, and contract breaches. Whether you're a commercial builder, subcontractor, or material supplier, protecting your business requires experienced legal counsel who understands both construction law and the realities of running a construction company.

At Hendershot Cowart P.C., our Houston construction lawyers represent contractors, builders, and construction companies in contract negotiations, payment disputes, mechanic's liens, construction defect claims, arbitration, and litigation in state and federal courts – including the new Texas Business Court.

We draft contracts that minimize risk, resolve disputes through negotiation when possible, and pursue aggressive litigation or arbitration strategies when necessary to protect your bottom line and keep projects moving forward.

Resolve construction disputes efficiently and protect your bottom line. Call (713) 783-3110 or contact us online to speak with a construction attorney who understands your business.

On This Page:

• Who We Represent
• Construction Contracts
• Construction Disputes and Resolution
• Construction Arbitration & Mediation 
• Business Formation & Risk Management
• 2025 Legislative Update
• Trust Our Proven Texas Construction Law Attorneys

Who We Represent

Our firm represents a range of individuals and companies in construction matters and disputes, including:

• General contractors
• Subcontractors
• Property owners
• Developers
• Design professionals
• Architects
• Engineers
• Surveyors
• Lenders
• Product manufacturers
• Material suppliers

Construction Contracts

A significant portion of our practice is centered on negotiating, reviewing, and executing construction contracts. We know from experience that clear, well-drafted, and enforceable agreements are less likely to become the center of disagreement down the road.

We handle the full spectrum of construction-related contracts required for real estate development and residential and commercial projects, including:

• Construction agreements (commercial and residential) drafting and review
• Subcontractor agreements
• Equipment lease/sublease agreements
• Joint bid agreements
• Architect contracts
• Supply contracts
• Non-compete and non-disclosure agreements
• Payment and performance bonds
• Indemnification provisions

Construction Dispute Resolution & Litigation

Construction disputes can arise from contract misinterpretations, performance failures, payment issues, and coordination breakdowns among multiple parties. Our Houston construction litigation attorneys resolve disputes efficiently through negotiation, mediation, arbitration, and trial when necessary. 

We offer decades of combined experience in litigation and arbitration to resolve common construction-related disputes, including:

• Breach of Contract Claims – Construction projects depend on the timely performance of contracts for labor, materials, equipment, and services. We represent contractors and owners in contract disputes involving delayed deliveries, defective workmanship, failure to pay, scope changes, and contractor abandonment.
• Delay and Disruption Claims – Project delays caused by weather, design changes, permit issues, or coordination failures can trigger substantial financial losses. We help contractors recover delay damages and defend owners against unfounded construction delay claims, including analysis of critical path schedules and assessment of liquidated damages provisions.
• Liquidated Damages – Liquidated damages clauses protect against delays and breaches, but disputes often arise over their enforceability, calculation, and whether actual damages were suffered. We advise clients on drafting enforceable provisions and litigating disputes over their application.
• OSHA Inspections and Incidents – We maintain an active OSHA defense practice representing general contractors, subcontractors, and property owners facing allegations of safety violations, citations, and proposed penalties. Our experience includes contesting citations, negotiating settlements, and defending against willful or repeat violation classifications.
• Payment Disputes and Mechanic's Liens – When contractors, subcontractors, or suppliers go unpaid, mechanic's liens provide security for payment. We represent both lien claimants seeking to enforce payment rights and property owners defending against invalid or excessive lien claims, including bond claims and trust fund violations.
• Construction Defects – Defective workmanship, materials, or design can result in costly repairs and structural failures. We handle construction defect claims for commercial builders, subcontractors, and property owners, including warranty disputes, indemnification issues, and claims under the Texas Residential Construction Commission Act (RCCA).
• Indemnification and Insurance Coverage Disputes – Construction contracts often contain complex indemnity agreements and additional insured provisions that shift liability between parties. We advise on drafting enforceable indemnification clauses, pursue coverage under insurance policies, and litigate disputes over duty to defend and duty to indemnify obligations.

Construction Arbitration & Mediation 

Most commercial construction contracts contain mandatory arbitration clauses requiring disputes to be resolved through binding arbitration rather than court litigation. Our attorneys regularly represent contractors, subcontractors, and owners in American Arbitration Association (AAA) or JAMS construction arbitrations, arbitration award enforcement proceedings, and strategic alternative dispute resolution (ADR).

Our construction arbitration and ADR services include:

• AAA Construction Arbitration – We represent parties in binding arbitration proceedings before the American Arbitration Association and JAMS, including disputes over breach of contract, payment claims, delay damages, construction defects, and scope of work disagreements. Our experience includes arbitrator selection, discovery management, expert witness coordination, hearing presentation, and post-hearing briefing to maximize favorable outcomes.
• Arbitration Award Confirmation and Vacatur – After an arbitration award is issued, we handle judicial proceedings to confirm awards for winning parties or challenge awards through motions to vacate based on arbitrator misconduct, fraud, corruption, or exceeding arbitral authority. With the 2025 passage of Texas HB 2960 (see “2025 Legislative Update” below), arbitration provisions requiring out-of-state arbitration for Texas construction projects are now void – we help clients enforce this protection and ensure disputes remain in Texas courts.
• Mediation and Alternative Dispute Resolution – Not all disputes require formal arbitration or litigation. We represent clients in mediation, settlement negotiations, and other ADR processes to achieve cost-effective resolutions that preserve business relationships and avoid the expense and uncertainty of prolonged proceedings. 

When facing arbitration proceedings or defending against an arbitration award, you need counsel with substantial experience in construction arbitration – not just courtroom litigation. Our construction arbitration experience provides the strategic advantage you need.

Business Formation & Risk Management

Growing construction companies face mounting legal complexities as they scale operations, hire employees, and take on larger projects. Whether you need non-compete agreements to protect your workforce, LLC formation to shield personal assets from business liabilities, streamlined contract templates to avoid disputes with homeowners, or comprehensive insurance and warranty guidance to protect against future claims, having experienced legal counsel prevents costly mistakes. 

Our business formation and risk management services for construction companies include:

• LLC Formation for Construction Companies – We guide contractors through entity selection and formation, including limited liability companies (LLCs), corporations, and partnerships. Our services include drafting operating agreements, establishing asset protection structures, obtaining contractor licenses and bonds, and ensuring compliance with Texas business registration requirements.
• Insurance and Warranty Guidance – Navigating insurance requirements is critical for construction companies. We advise on general liability coverage, professional liability policies, workers' compensation, builder's risk insurance, and warranty programs. We review insurance policies to identify coverage gaps, negotiate additional insured endorsements, and ensure compliance with contractual insurance requirements.
• Compliance and Regulatory Matters – Construction businesses must comply with federal, state, and local regulations governing licensing, permitting, safety standards, environmental requirements, and labor laws. We provide ongoing counsel on OSHA compliance, prevailing wage requirements, environmental regulations, and Texas Construction Commission rules to help you avoid costly violations and penalties.
• Retainer Services for Growing Construction Businesses – As your construction company grows, having experienced legal counsel on retainer provides immediate access to advice when issues arise. Our retainer services include contract review, employment agreement drafting, non-compete and non-disclosure agreements, vendor contract negotiations, risk assessment, and strategic business planning – allowing you to focus on building your business while we handle your legal needs.

Many contractors wait until they're facing a lawsuit or regulatory issue to seek legal help – by then, the damage is done and options are limited. Our proactive approach helps construction businesses establish the right legal infrastructure from the start and implement risk management strategies that grow with your company.

Keep projects running smoothly and protect your interests. Call the construction law attorneys at Hendershot Cowart P.C. at (713) 783-3110 today. 

2025 Legislative Update

Expanded Jurisdiction for Texas Business Courts 

Texas HB 40, effective September 1, 2025, expands the jurisdiction of the Texas Business Court by lowering the threshold for "qualified transactions" from $10 million to $5 million. This change impacts construction litigation by making the specialized Texas Business Court available for more complex construction disputes.

For construction disputes meeting the $5 million threshold, parties can now access judges with specialized expertise in complex commercial litigation, potentially leading to more efficient case management and resolution.

Venue for Texas Construction Projects

Texas HB 2960, effective September 1, 2025, significantly strengthens protections for Texas contractors. The law mandates that disputes arising from construction contracts involving Texas real property must be litigated in Texas, specifically in the county where the subject property is located.

This legislative change, prompted by the Texas Court of Appeals' decision in In re MVP Terminalling, LLC, eliminates the ability of parties to waive these protections, ensuring that contractors with less bargaining power are not pressured to accept out-of-state venues and potentially face expensive litigation far from home.

Exception: Parties can agree to a different Texas venue after the dispute arises.

These amendments apply to contracts entered into or renewed on or after September 1, 2025.

Surveyor Liability

With the passage of SB 687, land surveyors are now included in the liability protections already applied to architects and engineers under Texas Civil Practice and Remedies Code §130.002. The law voids any construction contract provision requiring contractors to indemnify or hold harmless architects, engineers, or land surveyors for damages caused by the design professional's own negligence, defective plans or specifications, or professional errors. Contractors cannot be forced to assume liability for the negligence of design professionals, protecting contractors from uninsurable third-party liability claims. 

The law also mandates that surveying services meet the professional standard of care ordinarily provided by competent land surveyors practicing under similar circumstances, voiding any contractual provision that imposes a higher standard. 

These protections apply to contracts entered into or renewed on or after September 1, 2025.

Mechanic's Lien Deadline Clarification

Texas SB 929, effective September 1, 2025, extends mechanic's lien deadlines that fall on weekends or legal holidays to the next business day. The law amends Section 53.003(e) of the Texas Property Code to prevent contractors and suppliers from losing lien rights when strict deadlines expire on days when offices are closed. This change provides greater certainty and protection for contractors, subcontractors, and material suppliers seeking to secure payment for construction work.

Experienced Construction Law Counsel You Can Trust

At Hendershot Cowart P.C., our construction law practice is built on versatile experience representing both contractors and property owners across Texas. This dual perspective gives us unique insight into how disputes develop and how to resolve them efficiently – whether through negotiation, AAA arbitration proceedings, or aggressive courtroom advocacy. 

We've handled construction disputes ranging from residential defect claims to multi-million-dollar commercial project litigation, and we understand the financial pressures and operational realities construction businesses face daily.

Our proactive approach emphasizes risk management through careful contract drafting, thorough project documentation, and early dispute resolution strategies that protect your bottom line before problems escalate. When disputes do arise, we respond quickly to urgent matters to keep a project moving forward.

Construction disputes threaten your profits and project timelines. Protect your business – call (713) 783-3110 or contact us online for a consultation with an experienced Houston construction attorney.