We noticed that in the wake of natural disasters, the same issues kept popping up for homeowners and contractors alike. Rather than write identical posts for every event, we thought it’d be a good idea to create one source applicable to every state. Thus, The Playbook for Disaster Recovery Construction Projects was born.
However, there will be some differences depending on the state. Here are some Texas-specific issues to keep in mind when recovering from Hurricane Harvey. We know there was damage here in Louisiana too, so we also threw in some Louisiana resources we thought might be helpful.
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Recovering From Hurricane Harvey: Texas Specifics
Hurricane Harvey could go down as the worst flooding event in US history. With flooding comes lots of construction, and with construction payment comes financial risk. Head over to our free Texas Construction Payment Resources for a deeper look at the laws surrounding construction in The Lone Star State. Louisiana resources are also available.
We recently posted about licensing considerations for Harvey Recovery. Specifically, we discussed how towing licenses have become easier to attain and how Louisiana electricians can quickly obtain Texas licenses. It would not be surprising to see some other licensing rules affected going forward, so keep an eye out.
“Disaster Remediation Contractors”
The term “Disaster Remediation Contractors” applies to some contractors aiding in disaster relief that are not from the area where they are working. There are specific requirements for those that are considered Disaster Remediation Contractors, including restrictions on payment methods and required contract language. If you think this might apply to you, you should read our post: Are You A “Disaster Remediation Contractor”? Considering how much trouble Louisiana had last year with post flood contractor fraud, this should provide much needed protection to Texas residents.
Good work is imperative during a time of recovery, but industry members can only continue to provide their services when they are compensated. In order to secure payment, contractors, subs, and suppliers need to know the applicable lien and notice laws. The Texas lien and notice requirements are some of the toughest in the country, but navigating them is easier with our Texas Lien and Notice FAQs and our Guide to Filing Texas Liens.
Louisiana notices aren’t quite as notorious. Regardless, here are our Louisiana Lien and Notice FAQs. Also, keep in mind, recording Louisiana liens just got more expensive, while obtaining Louisiana surety bonds has become easier.
Construction Trust Fund
Under the Texas Construction Trust Fund Act, certain construction payments are designated as funds held in trust for the benefit of the project participants, and in certain circumstances a “construction account” is required. It’s important to keep a clear accounting of all funds in and out, and only apply the funds to the proper parties. Otherwise, criminal penalties could be in play.
For more info, here’s what you need to know to avoid criminal penalties.
Here is some other, non-construction related information that might be helpful. If you have suggestions additions to this list, please feel free to comment on this post and we can update it as we go along.
Healthcare: Many healthcare professionals from other states have been given the green light to go to Texas and provide aid. Out of state nurses can get more information here, and out of state physicians can here.
In the wake of a natural disaster, getting life back to normal is usually priority number one. However, in the race back to normalcy, there are several considerations to keep in mind. While the Playbook is a great resource, there will always be state-specific information as well. Hopefully the tips and resources in the post make recovery a little easier.