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 without providing a copy to the other party at least ten days before the contract execution. This applies to contracts between original contractors and owners, as well as between subcontractors and original contractors or other subcontractors. The bill also allows for redaction of information in incorporated documents and requires written acknowledgment of receipt of such documents.

Additionally, the bill prohibits any waiver of the chapter's provisions, stating that any purported waiver is against public policy and void. It clarifies that the new regulations will only apply to contracts entered into or renewed after the effective date of the Act, which is set for September 1, 2025. The changes aim to enhance transparency and protect the rights of parties involved in construction contracts by ensuring that all relevant documents are accessible prior to contract execution.

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