The Board of Regents of the Texas A&M University System v. BE&K Building Group, LLC

CourtCourt of Appeals of Texas
DecidedFebruary 12, 2026
Docket15-25-00058-CV
StatusPublished

This text of The Board of Regents of the Texas A&M University System v. BE&K Building Group, LLC (The Board of Regents of the Texas A&M University System v. BE&K Building Group, LLC) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
The Board of Regents of the Texas A&M University System v. BE&K Building Group, LLC, (Tex. Ct. App. 2026).

Opinion

Affirmed and Memorandum Opinion filed February 12, 2026.

In The

Fifteenth Court of Appeals

NO. 15-25-00058-CV

THE BOARD OF REGENTS OF THE TEXAS A&M UNIVERSITY SYSTEM, Appellant V. BE&K BUILDING GROUP, LLC, Appellee

On Appeal from the District Court Brazos County, Texas Trial Court Cause No. 20-002171-CV-272

MEMORANDUM OPINION The Board of Regents of Texas A&M University System (“TAMU”) appeals the trial court’s denial of its plea to the jurisdiction asserting sovereign immunity. TAMU filed its plea in response to BE&K Building Group, LLC’s (“BE&K”) petition seeking damages for an alleged breach of a construction contract. Because the breach of contract claim falls within the sovereign immunity waiver for state agencies under Texas Civil Practice and Remedies Code Section 114.003, we affirm. BACKGROUND

In August 2016, TAMU hired BE&K to construct the Applied Sciences Engineering Building on TAMU’s Tarleton State University campus. The parties entered into a Construction Manager-At-Risk Agreement (the “Agreement”), setting the project’s maximum price at approximately $40.5 million (later increased to approximately $41.5 million) and a target substantial completion date of September 29, 2018 (later extended to October 4, 2018).

The Agreement outlines the scope of work, the process for altering the project’s terms, and the requirements for settling disputes. It is comprised of three components: (1) the Uniform General Conditions; (2) the Uniform Supplementary Conditions; and (3) the special conditions. The parties refer to the Uniform General & Supplemental Conditions together as “the UGSC.”

Relevant here, UGSC Article 9.6.2.2 states that BE&K is “entitled to an equitable adjustment of time” for certain delays to the project schedule, including delays due to TAMU’s errors and omissions or changes to work that is critical to completion. UGSC Article 11.3.1 allows BE&K to recover additional costs incurred during the project. UGSC Article 10.3 governs TAMU’s duty to pay, along with documentation requirements, and requires TAMU to reduce or release portions that it had retained from progress payments—termed “retainage”—once 65% of the Agreement had been completed. UGSC Article 12 governs the requirements for TAMU to make final payment. The Agreement also includes a dispute resolution provision which incorporates the requirements of Chapter 2260 of the Texas Government Code and requires BE&K to submit written notice of a claim of breach of contract to TAMU prior to filing suit.

BE&K began construction in April 2017. BE&K asserts that TAMU delayed the project by making a number of changes to the scope, including storm system and

2 roof system redesigns and the addition of a utility-support grid. To accommodate these changes, BE&K made several time extension requests which TAMU denied. BE&K claims that it achieved 65% completion of the Project and substantial completion in 2019, well after the agreed upon substantial completion date. TAMU refused to release retainage or compensate BE&K for its work.

BE&K sued TAMU under Chapter 114 of the Texas Civil Practice and Remedies Code, alleging that TAMU breached the Agreement by failing to equitably extend the substantial completion date and improperly withholding final payment and retainage. BE&K identified UGSC Articles 9.6, 10.3, and 11.3 as specific Agreement provisions it claims TAMU breached. BE&K stated that the balanced owed to it under the Agreement totaled more than $3.5 million.

In response to BE&K’s petition, TAMU filed a plea to the jurisdiction, arguing that BE&K’s suit under the Chapter 114 limited waiver provision was improper. TAMU asserted that (1) BE&K did not allege a breach of an express provision of the Agreement which required TAMU to pay, (2) BE&K’s failure to comply with the conditions precedent which would obligate TAMU to pay meant that no jurisdictional facts existed to establish waiver, and (3) BE&K did not comply with the notice and alternative dispute requirements before filing suit. TAMU attached to its plea a copy of the Agreement and an affidavit signed by Brett McCully, Director at the Office of Facilities Planning & Construction for The Texas A&M University System. In his affidavit, McCully stated that TAMU had not received the required documentation for final payment, written consent of the surety for a request of release of retainage, or any documents required to approve change orders or time extension requests. Also attached was a claim letter from McCully to Steven Olson, BE&K’s Chief Operating Officer, addressing BE&K’s alleged failure to comply with the contractual requirements which would obligate TAMU to grant

3 time extensions.

BE&K responded to the plea, arguing that the only jurisdictional fact required for Chapter 114’s immunity waiver was BE&K’s claim for breach of an express contract provision. According to BE&K, TAMU misconstrued Chapter 114 as requiring BE&K to prove the merits of its claim—an interpretation foreclosed by the Texas Supreme Court’s decision in Pepper Lawson Horizon International Group, LLC v. Texas Southern University, 669 S.W.3d 205 (Tex. 2023) (per curiam). BE&K also argued that it substantially complied with the Agreement’s notice provision, relying on the McCully affidavit’s references to past correspondence about the dispute and information that had been submitted to support BE&K’s request for time extensions. Attached to BE&K’s opposition was (1) a status update letter from BE&K’s counsel to the trial court asserting that BE&K’s work on the project was complete, (2) a transcript of McCully’s deposition addressing his affidavit, and (3) an affidavit of Read Ballew, BE&K’s Senior Vice President and Texas Business Unit Leader, asserting that BE&K had satisfied all conditions precedent.

TAMU replied to BE&K’s opposition, arguing that immunity had not been waived, that the notice provision was jurisdictional, and that Ballew’s affidavit was factually incorrect. TAMU attached an affidavit of Calvin Boydstun, Chief Executive Officer of TAMU’s independent auditor, asserting that he had not received a number of required documents from BE&K.

On March 21, 2025, the trial court held a hearing on TAMU’s plea to the jurisdiction and denied the plea. TAMU appeals.

STANDARD OF REVIEW A plea to the jurisdiction based on sovereign immunity implicates a trial court’s subject-matter jurisdiction and presents a question of law reviewed de novo.

4 State v. Holland, 221 S.W.3d 639, 642 (Tex. 2007); Texas Dep’t of Parks & Wildlife v. Miranda, 133 S.W.3d 217, 226 (Tex. 2004). The court must determine “whether the plaintiff has met its burden to allege facts affirmatively showing the trial court’s jurisdiction, but the court ‘may [also] consider evidence and must do so when necessary to resolve the jurisdictional issues raised.’” Pepper Lawson, 669 S.W.3d at 211 (alteration in original) (quoting Bland Indep. Sch. Dist. v. Blue, 34 S.W.3d 547, 555 (Tex. 2000)).

A defendant may challenge the court’s jurisdiction through a plea to the jurisdiction based on either the sufficiency of the pleadings or on the existence of jurisdictional facts. Miranda, 133 S.W.3d at 226–27. When a plea challenges the pleadings, the court, construing the pleadings liberally in favor of the plaintiff, must “determine if the pleader has alleged facts that affirmatively demonstrate the court’s jurisdiction to hear the cause.” Id. at 226.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Texas Department of Parks & Wildlife v. Miranda
133 S.W.3d 217 (Texas Supreme Court, 2004)
State v. Holland
221 S.W.3d 639 (Texas Supreme Court, 2007)
Bland Independent School District v. Blue
34 S.W.3d 547 (Texas Supreme Court, 2000)

Cite This Page — Counsel Stack

Bluebook (online)
The Board of Regents of the Texas A&M University System v. BE&K Building Group, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/the-board-of-regents-of-the-texas-am-university-system-v-bek-building-texapp-2026.