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 owner or contractor fails to provide a copy of that document within a specified timeframe before the contract is executed. Additionally, it allows for redaction of information in the incorporated documents, provided that redacted information cannot be included in the contract.

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

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