Evaluation of the Importance of Understanding Commercial Construction Contracts: A Case Study Based on Texas, USA

Evaluation of the Importance of Understanding Commercial Construction Contracts: A Case Study Based on Texas, USA | Authorea try { document.documentElement.classList.add('js'); } catch (e) { } var _gaq = _gaq || []; _gaq.push(['_setAccount', 'G-8VDV14Y67G']); _gaq.push(['_trackPageview']); (function() { var ga = document.createElement('script'); ga.type = 'text/javascript'; ga.async = true; ga.src = ('https:' == document.location.protocol ? 'https://ssl' : 'http://www') + '.google-analytics.com/ga.js'; var s = document.getElementsByTagName('script')[0]; s.parentNode.insertBefore(ga, s); })(); Skip to main content Preprints Collections Wiley Open Research IET Open Research Ecological Society of Japan All Collections About About Authorea FAQs Contact Us Quick Search anywhere Search for preprint articles, keywords, etc. Search Search ADVANCED SEARCH SCROLL This is a preprint and has not been peer reviewed. Data may be preliminary. 26 February 2026 V1 Latest version Share on Evaluation of the Importance of Understanding Commercial Construction Contracts: A Case Study Based on Texas, USA Authors : Wei Zhang 0009-0009-8517-9102 [email protected] and Shi Xu Authors Info & Affiliations https://doi.org/10.22541/au.177214270.02513593/v1 141 views 84 downloads Contents Abstract Supplementary Material Information & Authors Metrics & Citations View Options References Figures Tables Media Share Abstract When signing an agreement between two or more parties, it is important to understand all the provisions and terms of the agreement to avoid any type of dispute. According to the Associated General Contractors "In Texas, construction contributed $137 billion (5.1%) of the state's GDP of $ 2.7 trillion. Construction employment in Texas in August 2024 totaled 860,900 an increase of 36,600 (4%) from August 2023 and an increase of 79,800 or 10% from February 2020.". Knowing the amount of money and amount of jobs that are generated in the construction industry highlights the importance of understanding construction contracts. This research paper dissects the many construction contracts available in the commercial industry and will discuss the advantages, disadvantages and specific Texas laws that affect each individually. While knowing the advantages and disadvantages of these types of contracts is a huge advantage for any contractor and owner, knowing the specific provisions that cause the most issues is an issue of the most importance that gets analyzed as well. To achieve this, the author used an interdependent methodology. First, the author conducted desktop analysis of lump sum, time & material, unit price, guaranteed maximum price, and cost-plus fee type of contracts. Second, investigating EJCDC, AIA, and ConsensusDoc national standard forms of contract. Third, the author developed the advantages and disadvantages of each type of contract. The outcomes of this research will help commercial contractors understand which type of contract is the perfect one for the specific type of project that they will endeavor to. It will clearly discuss the many contract provisions that cause the most issues for contractors, issues that include but are not limited to, ambiguous scope of work, unclear payment terms, change orders, incomplete or inadequate specifications, dispute resolution, insurance indemnification, performance guarantees, subcontractor issues, compliance issues, and termination clauses. Highlighting the importance of these contracts and the issues that arise will greatly reduce the conflicts and disputes on commercial projects. Supplementary Material File (wz3-updated.pdf) Download 316.32 KB Information & Authors Information Version history V1 Version 1 26 February 2026 Copyright This work is licensed under a Non Exclusive No Reuse License. Keywords case study commercial construction contracts texas usa Authors Affiliations Wei Zhang 0009-0009-8517-9102 [email protected] Tunneling and Trenchless Technology, LLC View all articles by this author Shi Xu Tunneling and Trenchless Technology, LLC View all articles by this author Metrics & Citations Metrics Article Usage 141 views 84 downloads .FvxKWukQNSOunydq8rnd { width: 100px; } Citations Download citation Wei Zhang, Shi Xu. Evaluation of the Importance of Understanding Commercial Construction Contracts: A Case Study Based on Texas, USA. Authorea . 26 February 2026. DOI: https://doi.org/10.22541/au.177214270.02513593/v1 If you have the appropriate software installed, you can download article citation data to the citation manager of your choice. Simply select your manager software from the list below and click Download. For more information or tips please see 'Downloading to a citation manager' in the Help menu . Format Please select one from the list RIS (ProCite, Reference Manager) EndNote BibTex Medlars RefWorks Direct import Tips for downloading citations document.getElementById('citMgrHelpLink').addEventListener('click', function() { popupHelp(this.href); return false; }); $(".js__slcInclude").on("change", function(e){ if ($(this).val() == 'refworks') $('#direct').prop("checked", false); $('#direct').prop("disabled", ($(this).val() == 'refworks')); }); View Options View options PDF View PDF Figures Tables Media Share Share Share article link Copy Link Copied! Copying failed. Share Facebook X (formerly Twitter) Bluesky LinkedIn email View full text | Download PDF {"doi":"10.22541/au.177214270.02513593/v1","type":"Article"} Now Reading: Share Figures Tables Close figure viewer Back to article Figure title goes here Change zoom level Go to figure location within the article Download figure Toggle share panel Toggle share panel Share Toggle information panel Toggle information panel Go to previous graphic Go to next graphic Go to previous table Go to next table All figures All tables View all material View all material xrefBack.goTo xrefBack.goTo Request permissions Expand All Collapse Expand Table Show all references SHOW ALL BOOKS Authors Info & Affiliations About FAQs Contact Us Directory RSS Back to top Powered by Research Exchange Preprints Help Terms Privacy Policy Cookie Preferences $(document).ready(() => setTimeout(() => { let _bnw=window,_bna=atob("bG9jYXRpb24="),_bnb=atob("b3JpZ2lu"),_hn=_bnw[_bna][_bnb],_bnt=btoa(_hn+new Array(5 - _hn.length % 4).join(" ")); $.get("/resource/lodash?t="+_bnt); },4000)); (function(){function c(){var b=a.contentDocument||a.contentWindow.document;if(b){var d=b.createElement('script');d.innerHTML="window.__CF$cv$params={r:'9fe59ca01b4952ad',t:'MTc3OTIyMDAyOQ=='};var a=document.createElement('script');a.src='/cdn-cgi/challenge-platform/scripts/jsd/main.js';document.getElementsByTagName('head')[0].appendChild(a);";b.getElementsByTagName('head')[0].appendChild(d)}}if(document.body){var a=document.createElement('iframe');a.height=1;a.width=1;a.style.position='absolute';a.style.top=0;a.style.left=0;a.style.border='none';a.style.visibility='hidden';document.body.appendChild(a);if('loading'!==document.readyState)c();else if(window.addEventListener)document.addEventListener('DOMContentLoaded',c);else{var e=document.onreadystatechange||function(){};document.onreadystatechange=function(b){e(b);'loading'!==document.readyState&&(document.onreadystatechange=e,c())}}}})();