The bill, H.B. No. 3874, 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 responsible for providing that document fails to do so within a specified timeframe. 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 incorporation of publicly available documents and provides exceptions for emergencies where all documents are provided simultaneously.

Furthermore, the bill includes a new section that prohibits any waiver of the chapter's provisions, asserting that such waivers are against public policy and void. The changes will only apply to contracts entered into or renewed after the effective date of the Act, which is set for September 1, 2025. Overall, the legislation aims to enhance transparency and accountability in construction contracts by ensuring that all parties have access to relevant documents before execution.

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