Texas Built Construction Lawsuit Guide: Defects & Claims

Construction projects in Texas often involve high stakes, tight timelines, and complex contracts. When problems arise with workmanship, materials, payments, or delays, property owners and contractors quickly look for answers about their legal options. Searches for a “Texas Built Construction lawsuit” have increased as homeowners, commercial owners, investors, general contractors, and subcontractors seek clarity on disputes involving TBC Holdings Group, LLC (doing business as Texas Built Construction) and similar builders.

This guide explains how construction defect claims work under Texas law, the mandatory pre-suit process under the Residential Construction Liability Act, key deadlines including the statute of repose, common claim types such as breach of contract and latent defects, and practical steps to protect your rights. It draws on publicly available court records involving the company and established Texas statutes so you can make informed decisions.

Understanding Texas Built Construction and Related Disputes

TBC Holdings Group, LLC, operating as Texas Built Construction and previously linked to Texas Built Construction, LLP, is a Texas-based residential and commercial contractor with operations centered in the North Texas area, including Lewisville and Plano. Public records show the company has faced multiple lawsuits in Denton, Dallas, and Collin County courts. Many of these involve contract and debt-collection claims brought by subcontractors and suppliers alleging non-payment for labor or materials. Examples include cases filed by HP Envirovision, Inc., MOMO’S Construction, LLC, Foundation Building Materials, The Apparel Logistics Group, and others. Some matters have resulted in dismissals, agreed dismissals with prejudice, or default judgments. Homeowner-related complaints and reviews also reference project delays, workmanship concerns, and payment issues.

These filings illustrate typical patterns in Texas construction disputes rather than a single consolidated class action focused solely on latent defects. Individual cases turn on specific contracts, project records, and evidence. Anyone involved with a project connected to this or any similar builder should treat each situation on its own facts and consult counsel promptly.

What Counts as a Construction Defect in Texas?

A construction defect is a deficiency in the design, construction, or repair of a new residence, an alteration or addition to an existing residence, or an appurtenance (such as a pool, fence, or outdoor structure). The Texas Residential Construction Liability Act (RCLA), found in Chapter 27 of the Texas Property Code, defines the framework for most residential claims.

Liability generally requires that the defective condition proximately causes:

Actual physical damage to the residence,
An actual failure or inability of a building component to perform its intended function, or
A verifiable danger to the safety of occupants.

Normal wear and tear, ordinary shrinkage cracking within building standards, or damage caused by the owner’s failure to maintain the property or mitigate harm typically do not create liability. Commercial projects often rely more heavily on contract terms, building codes, and common-law theories because the RCLA applies primarily to residential work.

Latent defects are those that are not readily apparent at the time of substantial completion or closing. They may surface years later through water intrusion, foundation movement, framing problems, or system failures. Texas law recognizes the discovery rule in some circumstances, which can delay the start of the limitations period until the defect is or should have been discovered. However, the statute of repose still imposes an absolute outer limit.

The Residential Construction Liability Act: Mandatory Pre-Suit Steps

If you own a residence and believe defective construction caused damage, you must follow the RCLA process before filing suit or starting arbitration. Skipping these steps can lead to abatement of your case or limits on recoverable damages.

Step-by-Step RCLA Process

Send a detailed written notice by certified mail, return receipt requested, to the contractor’s last known address. The notice must describe the construction defects in reasonable detail. Vague statements about “poor workmanship” are usually insufficient.
The contractor has a reasonable opportunity to inspect, generally up to three inspections within a 35-day window after receiving notice.
Within 60 days of receiving the notice (extended from the prior 45-day period by 2023 legislation), the contractor may make a written settlement offer. The offer can include repairs by the contractor or an independent party, a cash payment, or a combination.
You have a limited time to accept or reject the offer. Rejection must explain why the offer is unreasonable.
If no reasonable offer is made or the parties cannot agree, you may proceed to court or arbitration. Failure by the contractor to make a reasonable offer removes certain damage limitations.

Recent amendments under House Bill 2022 clarified inspection rights and extended the settlement-offer window. Always document everything: photos, expert reports, correspondence, and proof of mailing.

Commercial building disputes and pure payment claims between contractors and subcontractors generally fall outside the RCLA’s mandatory notice scheme, though contract terms and other statutes still apply.

Key Deadlines: Statutes of Limitations and the Statute of Repose

Missing a deadline can permanently bar your claim, regardless of how strong the evidence is.

Breach of contract or warranty claims: Generally four years from the date the cause of action accrues (often discovery of the breach or defect under the discovery rule). See Texas Civil Practice and Remedies Code § 16.004.
Negligence or other tort claims: Generally two years. See § 16.003.
Statute of repose: Under Texas Civil Practice and Remedies Code § 16.009, most claims against a person who constructs or repairs an improvement must be brought no later than 10 years after substantial completion. For certain new residential construction (detached one- or two-family dwellings and qualifying townhouses) where the contractor provides a written “1-2-6” warranty (one year workmanship/materials, two years plumbing/electrical/HVAC systems, six years major structural components), the repose period shortens to six years. This change came from House Bill 2024, effective June 9, 2023.

The repose period is a hard outer limit. Limited extensions exist if a written claim is presented near the end of the period or if damage occurs in the final year, but the discovery rule does not toll the repose deadline. Fraudulent concealment or willful misconduct can sometimes avoid the bar.

Mark the date of substantial completion carefully. Certificates of occupancy, final payment applications, or architect certifications often serve as evidence.

Common Legal Theories in Construction Disputes

Plaintiffs often plead multiple theories:

Breach of contract: Failure to perform according to the plans, specifications, timeline, or quality standards in the agreement.
Breach of warranty: Express warranties in the contract or implied warranties of good workmanship and habitability (the latter is harder to waive in residential settings).
Negligence: Failure to exercise ordinary care in construction or supervision.
Deceptive Trade Practices Act (DTPA): Misrepresentations or failures to disclose in consumer transactions (subject to RCLA interplay).
Property damage liability: Claims for physical damage caused by defects.
Subcontractor payment claims: Mechanic’s liens, trust-fund violations under Chapter 162 of the Property Code, or prompt-payment statutes.

For subcontractors and suppliers dealing with a general contractor such as TBC Holdings, unpaid invoices often lead to debt-collection suits or lien filings. General contractors facing owner claims may assert third-party claims against responsible subs.

Practical Steps If You Suspect Defects or Face a Dispute

Document everything immediately. Take dated photographs and videos of the conditions. Hire a qualified independent inspector or engineer early. Review your contract for notice, warranty, arbitration, and venue provisions.

Preserve evidence and avoid unauthorized repairs that could complicate causation arguments. If you are a subsequent purchaser, obtain all prior inspection reports and disclosure documents.

Send the required RCLA notice if the claim involves a residence. Track response deadlines carefully. Consider mediation, which the RCLA encourages in higher-value cases.

For contractors and subcontractors, maintain clear payment records, change-order documentation, and lien notices. Promptly address any owner complaints in writing.

Court filings are public. Searching county district and county court records (or services that aggregate them) can reveal patterns, but each case stands on its own evidence. No public record reviewed for this article shows a single statewide class action solely against Texas Built Construction for systemic latent defects; the available cases are largely individual contract and payment disputes.

Recoverable Damages and Potential Pitfalls

Under the RCLA, recoverable economic damages typically include reasonable repair costs, costs to replace damaged goods in the residence, engineering and consulting fees, temporary housing during repairs, and in some structural cases a reduction in market value after repair. Attorney’s fees may be recoverable. Personal-injury claims fall outside the RCLA’s damage limits.

Pitfalls to avoid: failing to give proper notice, missing the repose deadline, over-relying on verbal assurances, and performing repairs before giving the contractor a chance to inspect. Arbitration clauses in many construction contracts can move the dispute out of public court.

Conclusion

Texas construction defect litigation rewards preparation and adherence to statutory procedures. Whether you are a homeowner dealing with possible latent defects, a commercial owner facing project delays, or a contractor or subcontractor involved in payment or performance disputes with entities such as TBC Holdings Group, LLC d/b/a Texas Built Construction, the RCLA notice process, clear documentation, and strict attention to the four-year contract limitations period and ten-year (or six-year) statute of repose are essential. Understanding these rules helps protect your investment and legal rights.

Consult a Texas-licensed attorney experienced in construction litigation to evaluate the specific facts of your project, review contracts, and determine the best next steps. Timely professional advice often makes the difference between a resolved claim and a barred one.

Frequently Asked Questions

What is a Texas Built Construction lawsuit?
It typically refers to individual contract, payment, or defect claims involving TBC Holdings Group, LLC d/b/a Texas Built Construction rather than one large class action. Public records show multiple county-level filings, many focused on unpaid invoices or performance issues.

Do I have to follow the RCLA before suing a builder?
Yes for most residential construction defect claims seeking damages or other relief. You must send the 60-day certified-mail notice and allow inspection opportunities.

How long do I have to file a construction defect claim in Texas?
Generally four years for breach of contract or warranty from accrual (often discovery), two years for negligence, subject to the absolute ten-year (or six-year with qualifying warranty) statute of repose from substantial completion.

Can subsequent home buyers bring claims?
Yes. The RCLA expressly applies to subsequent purchasers who file claims against a contractor for construction defects.

What if my contract requires arbitration?
Arbitration clauses are generally enforceable in Texas construction contracts. The RCLA process still applies before initiating arbitration in covered residential cases.

Are commercial projects treated the same as residential ones?
No. The RCLA primarily governs residential claims. Commercial disputes rely more on the contract, building codes, and common-law theories.

Should I repair defects myself before notifying the builder?
Usually no. Premature repairs can affect the contractor’s inspection rights and your ability to recover certain costs.