Additional Contracting Requirements Needed for Repairs due to a "Named Storm" in Texas

Here’s a friendly reminder of the additional contracting requirements needed for repairs due to a “named storm” in Texas. A contractor offering remediation services:

1. must do the work under a signed contract before the work begins, except perhaps emergency repairs
2. cannot request an upfront or interim payment that exceeds the reasonable value of the materials to be delivered or work to be performed and 
3. must include the following language in their contract: "This contract is subject to Chapter 58, Business & Commerce Code. A contractor may not require a full or partial payment before the contractor begins work and may not require partial payments in an amount that exceeds an amount reasonably proportionate to the work performed, including any materials delivered."

This warning can go anywhere in your contract but must be minimum 10 point bold font. If you use digital contracts it’s easy to stick this provision in. If you’re using paper, you can easily meet the contract language requirement by either including the warning in an addendum or making a stamp that you can manually stamp on your paper contracts wherever you may have room. 

These requirements apply to ALL contracts, residential and commercial. They cannot be waived and a failure to follow these two requirements is a deceptive trade practice that opens you up to triple damages and attorney fees, but will not void your contract.

Note: These requirements DON’T apply to contractors who have, for at least a year prior to the declaration, maintained a physical address in the county where the storm occurred or a county adjacent to the named storm county.

Karen Ensley, Managing Partner, Ensley Benitez Law, PC 8140 Walnut Hill Ln., Dallas TX 75231 | Direct 469-501-5561 | Cell 817-538-6894 [email protected] | eblawtexas.com