Can They Fix It? YES, They Can: Rebalancing the Scale of Financial Security on Construction Projects

Abstract

The construction industry is one of the most dominant industries worldwide. The United States is no stranger to development and growth, and as so, it possesses one of the largest construction industries in the world. Given the magnitude of the industry, it is no secret that every party involved in a construction project feels the loom of financial risks and that such risks continue to plague the industry. The government, particularly the legislature, has a special influence in that the laws it passes can either encourage continued development and make the industry flourish or bring it to a complete stop, bringing detrimental loss to all involved. Texas is evidence of this when it deemed construction workers “essential” during the COVID-19 pandemic. While many businesses struggled to stay afloat, the development of projects across the state continued. This Comment explores what it is like to be exposed financially as a lower-tier party on a construction project and the protections that exist in law for them. Specifically, this Comment will dive deep into the remedies of Texas law, analyzing the realities of their use coupled with their complexities. Additionally, it will examine the laws of other states to illustrate the unique complexities that exist in Texas law. Finally, this Comment will conclude with proposed changes that seek to streamline the financial lifeline of many construction industry participants.