One Step Forward In Texas

There is hope on the horizon for Texas contractors that, for decades, have borne liability for construction defects in owner-furnished contracts.

Texas is the only state where a contractor may be liable for the defects that result directly from construction plans and documents prepared or procured by the owner, owner’s agent, or owner’s design professional.

Construction industry professionals have long bemoaned Texas’ reliance on the Lonergan Doctrine, which imposes a harsh standard for liability on contractors in these instances.

Senate Bill 219, which was signed by Gov. Greg Abbott in June and became effective Sept. 1, 2021, brings Texas on board with the laws of other states by limiting a contractor’s responsibility in regard to design defects and owner-furnished plans and specifications, finally providing the Texas contractor some amount of relief.

Every state except Texas follows what is known as the Spearin Doctrine. In United States v. Spearin, 258 U.S.132,39 S.Ct. 59 (1918), the court found that an owner impliedly warrants the information, plans, specifications, and other construction documents that are provided to the contractor.