A general contractor agreement is, as the name implies, generally an agreement between the owner of real estate and a building contractor for services to manage the construction (and sometimes the design) of a residential or commercial building according to certain specifications or plans provided by the owner.
A general contractor agreement includes a description of the scope of the work to be performed; the materials to be used; the general contractor’s obligations to hire and manage subcontractors to construct the various components of the building; the payment terms for the construction of the building and the management of the construction; the time for completion of the work; insurance requirements; and the filing and removal of mechanic’s and materialmen’s liens (also known as construction liens or contractor liens) for labor and materials provided to improve the real estate.
In Texas, a general contractor agreement is a legally binding contract that outlines the relationship and obligations between a property owner and a general contractor hired to manage construction projects. This agreement typically includes detailed provisions regarding the scope of work, materials to be used, the hiring and management of subcontractors, payment schedules, timelines for completion, insurance requirements, and the handling of mechanic's and materialmen's liens. Texas law requires that contracts for the improvement of real property be in writing if they are for more than $50,000. The Texas Property Code also provides specific regulations regarding the filing and release of mechanic's and materialmen's liens, which are designed to ensure that contractors and subcontractors are paid for their services and materials. It is important for both parties to clearly understand and adhere to these regulations to protect their respective rights and interests during the construction process. An attorney can provide valuable assistance in drafting, reviewing, and enforcing general contractor agreements to ensure compliance with Texas laws and regulations.
