A Texas Subcontract for Construction of a Portion of a Building or Materials to be Used in a Building with Provisions for Termination and Retention of Amounts Due to the Subcontractor is a legal agreement between a contractor and a subcontractor in the state of Texas. This contract outlines the terms and conditions for the subcontractor to complete a specific portion of the building or provide materials for the construction project. In the event of termination for cause, which typically occurs when one party fails to fulfill their contractual obligations, the contractor has the right to terminate the subcontractor's services. However, this subcontract includes provisions that allow the contractor to complete the remaining work on their own and retain any amounts due to the subcontractor. This type of subcontract ensures that the contractor has the ability to safeguard the project's progress and minimize any potential delays or disruptions caused by the termination. By enabling the contractor to finish the remaining work, the subcontract aims to maintain the project's timeline and prevent any additional expenses that could arise from finding a new subcontractor. There may be different variations of this Texas Subcontract for Construction, each tailored to specific project requirements or considerations. Some common types of subcontracts in this category include: 1. Subcontract for Construction of a Structural Portion: This agreement applies to subcontractors responsible for constructing critical structural elements of a building, such as foundations, walls, or roofs. 2. Subcontract for Installation of Mechanical Systems: This contract pertains to subcontractors involved in installing mechanical systems, such as HVAC, plumbing, or electrical systems in the building. 3. Subcontract for Supply of Building Materials: This type of subcontract is focused on suppliers of materials to be used in the construction project, including but not limited to lumber, concrete, steel, or other necessary components. 4. Subcontract for Finishing Work: This agreement applies to subcontractors specialized in finishing work like flooring, painting, tiling, or any aesthetic aspects required to complete the building. These different subcontracts may have specific provisions related to the particular scope of work they cover, while still encompassing the general terms of termination for cause and retention of amounts due to the subcontractor. It is essential for both parties, the contractor and the subcontractor, to carefully review and understand the terms and conditions of the subcontract before signing. It is recommended to seek legal advice to ensure that the agreement complies with relevant laws and adequately protects the interests of all parties involved.
Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés. For your convenience, the complete English version of this form is attached below the Spanish version.