Uniform General Conditions (UGCs) Update

Overview of the Uniform General Conditions

The Texas Uniform General Conditions (UGCs) serve as the statewide baseline contractual framework for public construction projects. Adopted by the Texas Facilities Commission, the UGCs provide consistent, predictable rules governing procurement, construction administration, payment processes, risk allocation, and project closeout across state construction contracts. Their purpose is to ensure clarity, fairness, and uniformity for owners, contractors, and design professionals working on state-funded projects.

The UGCs address:

  • Roles and responsibilities of the Owner, Contractor, and Architect or Engineer

  • Procedures for schedules, changes, payments, retainage, and closeout

  • Requirements for bonds, insurance, safety standards, and quality control

  • Standardized dispute resolution, delay provisions, and warranty expectations

  • Consistent rules that agencies use statewide to administer construction projects

Supplementary and Special Conditions may tailor project-specific requirements, but the core UGCs establish the foundation that ensures statewide consistency.

ABC Texas’ Statutory Role in the UGC Update Process

Under Texas law, ABC Texas is one of the statutorily designated industry organizations that participates in the UGC review process every five years. This committee is responsible for evaluating needed updates, proposing changes, and making recommendations to the Texas Facilities Commission.

Although the UGCs are typically reviewed on a five-year cycle, the 2020 review was delayed due to the pandemic. As a result, the 2025 review became the first update since 2015, making industry input especially critical.

ABC Texas played a major role in the 2025 revision cycle. Our representatives on the committee ensured the contractor perspective was strongly represented and actively advocated for improvements that reduce unnecessary risk, improve clarity, modernize processes, and support fair and efficient project delivery. ABC Texas' involvement included:

  • Serving on the UGC review committee

  • Identifying necessary updates reflecting modern construction practices

  • Advocating for provisions that protect contractors, improve cash flow, clarify responsibilities, and ensure equitable risk allocation

  • Coordinating with AGC, legal counsel, and other stakeholders

  • Working with the Office of the Attorney General to finalize legally sound language

Our participation is a statutory responsibility and a key part of protecting public contractors statewide.

2025 UGC Updates

Below is a summarized, readable version of the major changes adopted in the 2025 update.

    • CMAR design liability removed
      CMARs are no longer treated as designers. Their responsibility is limited to coordination and identifying discrepancies, not design obligations.

    • Broad mutual waiver of consequential damages
      The UGCs now include a bilateral waiver that protects both owners and contractors from expansive consequential damages claims, while maintaining liquidated damages where applicable.

    • Targeted compensation carve-out for owner-caused delays
      While the baseline no damages for delay is retained, contractors can now receive relief when delays are caused solely by intentional owner interference after proper notice.

    • Concurrent delay guidance added
      Clarifies that contractors may receive time extensions for the excusable portion of concurrent delays based on critical-path impact.

    • Expanded force majeure clause
      Recognizes governmental actions tied to pandemics, epidemics, and similar events as excusable delays. Also clarifies that force majeure events are excluded from warranty obligations.

  • Greater flexibility for substitutions
    Substitutions can be considered for reasons including product unavailability, obsolescence, compatibility issues, or owner benefit, provided proper documentation and consistency with design intent.

    • Retainage release deadline
      Absent disputes, retainage must now be released within 90 days after Substantial Completion to improve cash flow.

    • Punch list timing relief
      Contractors have a default 30-day period to complete pre-final punch list items, with reasonable extensions available for delays outside their control.

  • Warranty limits refined
    Warranties do not cover defects caused by force majeure or normal wear and tear. Warranties for equipment begin at Substantial Completion even if placed in service earlier.

How This Benefits ABC Texas Members

These updates reflect five years of industry evolution and significant advocacy from ABC Texas. The revisions:

  • Reduce unnecessary risk exposure

  • Improve clarity in delay and schedule management

  • Strengthen fairness in payment timing and retainage

  • Modernize provisions to reflect real-world materials and supply chain challenges

  • Prevent overextension of contractor liability

  • Improve project administration and reduce ambiguity

ABC Texas will continue to participate in every UGC review cycle to ensure the contractor voice remains central in shaping statewide construction rules.