Texas Construction Association

For more than a decade Texas Construction Association has represented Texas Subcontractor and Supplier interests. TCA’s experienced governmental affairs staff advocates for legislative reforms that impact your subcontractor or supplier businesses. We encourage member input and participation on our legislative agenda and bills. Read about TCA’s current bills.

WE ARE PROUD OF OUR LEGISLATIVE SUCCESSES!

2013
TCA supports several important issues in the 82nd Legislative Session.

2009 Indemnification
A measure limiting the use of broad form indemnity and additional insured clauses passed the Texas Senate 30 to 1, the House Committee 8-0, but died at the top of the Major State Calendar in the last days of the Legislative Session when a filibuster involving an unrelated issue prevented consideration of it and scores of other bills on the calendar.

2009 Recovery of Attorney Fees
Fees Legislation passes providing that if a contractor or supplier prevails in a suit involving a construction contract with a local governmental entity, the contractor or supplier is entitled to recovery of its attorney fees from the governmental entity.

2009 Construction Trust Fund Act
Act was amended to provide that funds subject to the Act are not subject to seizure by a claim by a bankruptcy trustee for an upstream payor who files bankruptcy. The Act was also amended to overturn an appellate court decision that limited a claimant’s remedies for nonpayment on a public project to the payment bond. The language change included providing that the remedies under the TCTFA and other remedies are in addition to any remedy provided by a payment.

2009 – Fraudulent Lien
Because of the broad language contained in the Texas Fraudulent Lien Act, an innocent mistake or error expose the claimant to significant civil and criminal penalties. Many subcontractors and suppliers were reluctant to file liens because of this exposure. The Act was amended to provide that a violation of the actinvolving a mechanic’s and materialman’s lien required the showing that the claimant filed the lien with an intent to defraud.

2007 - Recovery of Attorney Fees
TCA supported legislation that treated public entities and contractors the same in the recovery of attorneys fees by the prevailing parties in a dispute. If public entities can recover attorney fees under the terms of the construction contract, the clause is only effective if the contractor can also recover attorney fees.

2007 – Indemnification
The Texas Senate passed legislation banning the use of broad form indemnification clauses and additional insured clauses in construction contracts. The measure failed to pass the House. This was the first time that this legislation had passed either chamber of the legislature.

2007 - Contingent Payment
SB 324, the contingent payment bill, was passed and signed into law. This measure provides that a contingent payment clause is not effective 1) when the subcontractor does the work properly and the owner withholds payment because of actions of he general contractor or another or another subcontractor; 2) the owner/general contractor relationship is a sham; and 3) the enforcement of the contingent payment clause would otherwise be unconscionable. The clause is effective when the owner does not pay because the owner is insolvent. A subcontractor can give notice to the general contractor after payment is not made in accordance with the act that the clause is not effective for future work performed after the event of non-payment.

2006 – Franchise Tax
An amendment was inserted in the tax bill at the request of TCA allowing the full deduction from its gross revenue calculation for a subcontractor’s payments to lower tiered subcontractors

2006 – Franchise Tax
TCA worked with the Governor's Task Force and the legislative sponsors of the legislation that made a major revision in the business franchise tax during a Called Session of the 79th Legislature. At the request of TCA, the sponsors included a provision that allowed the construction industry to deduct the costs of materials as well as their labor costs when calculating the new business tax, often called the Margins Tax. This one change will save contractors and suppliers an amount equal to 1% of their material costs each year that they would have otherwise paid in franchise taxes. If a contractor spends $1,000,000 per year in material costs, the savings in franchise taxes would total $10,000 for that year.

2005 – Payroll Tax
TCA, working with other groups, helped to prevent the imposition of an onerous payroll tax on construction companies as a method to finance the public schools.

2005 – Workers’ Compensation
TCA provided input on a bill that made significant and substantially changes to the workers’ compensation law.

2005 – Inter-Governmental Work
A measure that restricts a local governmental entity from providing construction services to other governmental entities passes.

2005 – Sovereign Immunity
A TCA supported measure passes that prohibits the assertion by any local governmental entity of a sovereign immunity defense in a construction contract dispute. This includes school districts, municipalities, community college districts and other special districts.

2003 – Mechanic’s Liens
Stopped several efforts to dilute subcontractors and suppliers rights under Texas mechanic’s lien statute.

2003 – Sovereign Immunity
Bill passes that overturns Texas Supreme Court ruling that gave counties sovereign immunity.

2003 – Prompt Pay
Bill passes that amends the public work prompt pay act. The bill provides a right to suspend work if the owner does not pay.

2001 - Surety
Good faith response to bond claims and surety contact information bills pass.

2001 – Indemnification Amendment
Passed to comptroller sunset bill that provides limitations on indemnification for state agency construction projects.

1999 – Prompt Pay
Amendment to the private work prompt pay act passes.

1998 – TEXAS CONSTRUCTION ASSOCIATION IS BORN