The bill amends the Business & Commerce Code to establish new provisions regarding voidable clauses in construction contracts. It introduces definitions for key terms such as "construction contract," "copy," "original contract," "original contractor," "owner," and "subcontractor." The bill specifies that a provision in a construction contract is voidable if it incorporates another document and the party does not receive a copy of that document at least ten days before the contract is executed. This applies to contracts between original contractors and owners, as well as between subcontractors and original contractors or other subcontractors. Additionally, the bill allows for the possibility of redacting information from incorporated documents, provided that redacted information cannot be included by reference.

Furthermore, the bill includes provisions that clarify exceptions to the voidability rule, such as for publicly available documents and in emergency situations where all documents are provided simultaneously. It also prohibits any waiver of the chapter's provisions, stating that such waivers are against public policy and void. The changes will apply only to contracts entered into or renewed after the effective date of the Act, which is set for September 1, 2025.

Statutes affected:
Introduced: Commerce Code 272.0001, Commerce Code 272.001 (Commerce Code 272)