The bill, H.B. No. 3874, amends the Business & Commerce Code to address voidable provisions in certain construction contracts. It introduces new definitions for terms such as "construction contract," "copy," "original contract," "original contractor," "owner," and "subcontractor." The bill specifies that provisions in construction contracts that incorporate other documents are voidable if the party responsible for providing the incorporated 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 possibility of redacting information from incorporated documents, provided that redacted information cannot be included in the contract.

Furthermore, the bill establishes that a person cannot waive the provisions of this chapter, making any purported waiver void and against public policy. It also 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 bill 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)
House Committee Report: Commerce Code 272.0001, Commerce Code 272.001 (Commerce Code 272)