Subcontractor Property Damage in Texas - Who is Liable?

Avoid the conduct that can create liability for you and your company for a subcontractor’s damages or torts.

The successful execution of a construction project depends, in part, on a clear expectation and understanding who bears what risk or risks. All parties, naturally, want to shift risk away from themselves to the extent they can, usually because risk and price go hand-in hand. By reducing risk a party can reduce its price. General contractors, in particular, want to push project risks to subcontractors and try to shield themselves from the latters’ damages and torts. But sometimes there is no escaping this liability. This topic will identify when an injured third-party might or might not expect relief from an owner or a general contractor for a subcontractor’s damages or torts. The content also explains how contractual provisions, performance, and additional insured coverage can shield general contractors from this liability. This information is essential for all construction project participants who want to understand their project’s risk allocation and how they can minimize it to their benefit.

Faculty

David Taubenfeld

Haynes and Boone, LLP

Pierre Grosdidier

Haynes and Boone, LLP