When construction defects happen, the stakes become high. Lawsuits can cost millions, slow projects and hurt your reputation.
At this point, you may wonder if subcontractors can share the responsibility. Multiple parties can be liable in Texas. But this depends on your role, contracts and the cause of the defect.
How liability is assigned in Texas construction claims
Owners, general contractors and subcontractors can all be liable for defects. Texas courts examine who caused the problem, whether anyone was negligent and what contracts require.
Common claims would include negligence, breach of contract and warranty issues. Laws like the Texas Residential Construction Liability Act (RCLA) and the Deceptive Trade Practices Act (DTPA) can also affect how liable you may be.
Texas uses a modified comparative fault model. Responsibility can be shared. But under the 51 percent rule, a party more than 51 percent at fault cannot recover damages. You may still share liability even if you are not the main party at fault. Knowing your obligations and preparing for claims helps you respond quickly.
Practical steps for limiting subcontractor exposure
You can take steps to reduce shared liability. The first thing is defining your roles and responsibilities. You also need to follow building codes and industry standards. Thirdly, inspect the site regularly to catch problems early. You can use contracts that include insurance and indemnification clauses.
Acting on reported defects quickly can reduce risk. These actions cannot prevent all claims, but they can help protect your company:
- Clearly define subcontractor roles in written agreements
- Require compliance with building codes and standards
- Conduct regular inspections and keep records
- Include insurance and indemnification clauses
- Address defects promptly to prevent escalation
When you do this, you place your company in a strong position to act fast if a claim arises. This blog post is for informational purposes and is not a substitute for legal advice from qualified counsel.
Playing offense in defect claims
You will need to be proactive when it comes to defect claims. When you understand Texas law, the process may be easier to help your team act strategically. Quick action with experienced counsel may help limit your risk and protect your reputation. Playing offense, not just defense, gives you control over the outcome.