Why Houston Construction Companies Can Turn to the Outside General Counsel Model

Construction companies in Houston and across Texas face tight deadlines, shifting regulations, and legal risk on nearly every project. Whether it's managing subcontractor claims, negotiating contracts, or defending against defect allegations, legal issues can escalate fast—and get expensive. Most traditional construction lawyers charge hourly rates — and to be clear, I do as well if that is my client’s preference. But for many construction companies without full-time legal support, the Outside General Counsel (OGC) / Fractional Counsel model can offer a smarter, more flexible solution.

Instead of hiring a full-time general counsel or working with someone on an hourly basis, construction companies can partner with experienced lawyers who serve as an extension of their team—on-demand, predictable, and cost-effective. This blog explains how the OGC model works, why it's growing in popularity, and how Elkhoury Law uses it to help construction companies stay protected and profitable.

What Is the Outside General Counsel Model?

The Outside General Counsel model refers to hiring a law firm or a solo practitioner to act as a company’s go-to legal advisor. Rather than reacting to legal problems as they arise (often by hiring different attorneys at different firms), a company has a single-source trusted advisor familiar with its business, projects, and risk profile. The Outside General Counsel is the person you call when you have a legal question, need to negotiate a contract, need to make an insurance claim, need to negotiate or mediate a dispute—essentially, they handle your problems before they become lawsuits.

For construction businesses with limited or no in-house legal support, this model is especially valuable.

Common, Recurring Legal Challenges in Construction

Construction companies deal with a unique mix of recurring legal needs, that often require a specialist to address. These include:

• Contract drafting and negotiation

• Change order, delay, and disruption claims

• Defect and warranty disputes

• Mechanics’ liens and bond claims

• OSHA investigations, and worksite accidents

• Licensing, permitting, and regulatory compliance

• Insurance claims and recovery

With an Outside General Counsel—and especially one who is a construction specialist—you gain a legal partner who understands these challenges and gets ahead of them, often before they hit your bottom line. The Outside General Counsel not only handles recurring construction legal issues, but handles your other day-to-day legal needs as well, including:

• Corporate/business structuring;

• Stock and equity grants and related issues;

• Handling employment and employee issues;

• Negotiating licensing deals, non-disclosure, and confidentiality agreements;

• Commercial leases;

• Commercial loans and commercial investments; and

• Insurance portfolio development and policy negotiations.

Why Construction Companies Choose Outside General Counsel

1. Predictable Legal Costs

   Outside General Counsel services are often delivered on a monthly flat fee or a blended model, eliminating surprise legal bills and providing cost-certainty. According to a Clio survey, cost certainty is important for most clients: 71% of clients prefer to pay by flat fee.

2. On-Demand Legal Advice

   Need a contract reviewed fast? Facing a lien deadline? Outside GC clients often get priority response times, without the friction of signing one-off legal engagements, waiting for a retainer to process, or other administrative tasks necessary for most firms to open up new matters. Better yet, if on a flat fee model, you won’t have to worry about picking up the phone to figure out if an issue is worth escalating to the lawyer.

3. Strategic Business Partnership

   Your outside general counsel shouldn’t just be a problem-solver. They should act as a business-minded advisor who understands your long-term goals, project pipeline, and preferred way of operating. Think of them as a C-suite level member of your team, without the need of paying a C-suite salary.

4. No Overhead.

   With an outside GC, you gain senior legal support without the cost of salary, benefits, or onboarding.

5. Local Experience and Industry Focus

   While Elkhoury Law serves all kinds of clients, one of my largest focuses is on Houston-area construction companies, engineers, owners, developers, and other stakeholders in the construction industry. My familiarity with Texas law and regional construction practices makes me effective and efficient.

What does an Outside General Counsel do for a Construction Company?

Here is how I typically serve outside general counsel clients in the construction industry:

• Performing legal risk audits of current contracts and claim procedures, and training your team on efficient and business-friendly ways to better manage your risks;

• Negotiate and draft construction or and design contracts (be they FEED, EPC, CMAR, DBA, DBB/design-tender, subcontracts, or others), and create or modify form contracts as necessary for future use;

• Handle lien issues, payment issues, and change order disputes;

• Advise your project team on mid-project disputes, and how they should act to preserve the best chances of success;

• Provide project-recovery advice from a risk and legal perspective;

• Advise on compliance with regulatory agencies;

• Draft and respond to demand letters;

• Help resolve disputes before they escalate into lawsuits, including pre-suit mediation;

• Handle insurance claims and related issues;

• Serve as a legal sounding board for leadership and operations;

• Handle or advise on employment issues;

• Negotiate all other commercial contracts, including any commercial leases, loans, insurance policies, and investments;

• Update and revise your corporate legal documents; and

• Work with your other attorneys or specialists, including your accountants and tax specialists.

I can work both as an ongoing outside general counsel, and I can also serve as a project-based counsel, depending on your needs and your budget.

Why should a Construction Company work with Elkhoury Law?

• Construction is one of my major focuses—I speak the language of developers, contractors, and engineers;

• I’m based in Houston, Texas, and represent clients across the state;

• I offer practical, business-oriented legal advice—no jargon, no fluff. I get the job done; and

• I work on flat-fee or hybrid models that align with your cash flow and risk profile.

Ready to Explore the Outside General Counsel Model?

I help Texas construction companies reduce legal spend, save time, reduce risk, and build confidence. Whether you need part-time general counsel or support for a specific project, I’m ready to help.

Elkhoury Law PLLC — Andrew Elkhoury
andrew@elkhoury.law
713-703-1060