Texas Construction Association supports HB 2960 to protect subcontractor rights

The Texas Senate Committee on State Affairs convened on May 8, 2025, to discuss House Bill 2,960, a legislative measure aimed at addressing a significant legal issue affecting subcontractors across the state. The bill has garnered support from key stakeholders, including the Texas Construction Association, represented by Jennifer Fagan during the public testimony segment of the meeting.

Fagan articulated the association's backing for the bill, emphasizing that it serves as a necessary correction to a judicial misstep. She explained that a recent court ruling had implications for subcontractors, stating that when a general contractor signed a contract with an owner that included an out-of-state venue and law provision, it inadvertently waived the rights of all subcontractors involved in the project. This ruling raised concerns about the ability of subcontractors to protect their interests, as they were bound by terms set forth in contracts they did not directly negotiate.

The committee's discussion highlighted the importance of House Bill 2,960 in restoring rights to subcontractors and ensuring fair treatment within contractual agreements. The bill aims to clarify the legal standing of subcontractors in relation to general contractors and the contracts they enter into with project owners.

As the committee continues to deliberate on this bill, the implications for the construction industry and subcontractors in Texas remain significant. If passed, House Bill 2,960 could enhance protections for subcontractors, fostering a more equitable environment in construction contracts statewide. The committee's next steps will be closely watched by industry stakeholders eager for clarity and fairness in their contractual relationships.