ContractsSCATexas
TXSouthBusiness-FriendlyHigh Risk

Subcontractor Agreementin Texas

A contract between a prime contractor and subcontractor defining the scope of work to be performed, payment terms, and flow-down obligations from the prime contract. Texas's business-friendly legal climate creates specific considerations for SCA drafting and enforcement.

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Legal Climate
Business-Friendly
Non-Competes
Enforced
Governing Law
Very Popular
Key City
Houston

Texas Contract Law

Key Legal Fact

Texas Covenants Not to Compete Act permits non-competes if ancillary to enforceable agreement with limited restrictions.

Notable SCA Law

Tex. Bus. & Com. Code § 15.50 requires non-competes to be ancillary to otherwise enforceable agreement.

Key Clauses to Review

1
Flow-Down Provisions
Requires Texas-specific drafting under business-friendly legal standards.
2
Payment Contingent on Prime Payment
Requires Texas-specific drafting under business-friendly legal standards.
3
Termination for Convenience
Requires Texas-specific drafting under business-friendly legal standards.
⚠ Common Issue
"Pay when paid" clauses shifting client non-payment risk to subcontractor

Major Industries in Texas

EnergyTechnologyHealthcareAgriculture

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