The Texas Legislature amended statutes impacting construction contracts for projects located in Texas to declare any forum selection clause or choice of law provision “void as against public policy,” and mandate venue for any litigation or arbitration shall be in the Texas county in which the work is performed. The parties may stipulate to a different venue only after the dispute arises.

Forum selection clauses and choice of law provisions are common in construction contracts. Frequently, general contractors based in other jurisdictions require subcontractors to sign contracts designating the contractor’s preferred venue for any dispute. These contracts may also select the law of another state to govern the contract.