Bill Text: TX HB2116 | 2021-2022 | 87th Legislature | Enrolled
Bill Title: Relating to certain agreements by architects and engineers in or in connection with certain construction contracts.
Spectrum: Bipartisan Bill
Status: (Passed) 2021-06-15 - Effective on 9/1/21 [HB2116 Detail]
Download: Texas-2021-HB2116-Enrolled.html
H.B. No. 2116 |
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relating to certain agreements by architects and engineers in or in | ||
connection with certain construction contracts. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. The heading to Chapter 130, Civil Practice and | ||
Remedies Code, is amended to read as follows: | ||
CHAPTER 130. LIABILITY PROVISIONS [ |
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CONSTRUCTION CONTRACTS | ||
SECTION 2. Section 130.002, Civil Practice and Remedies | ||
Code, is amended by adding Subsections (c), (d), (e), and (f) to | ||
read as follows: | ||
(c) Except as provided by Subsection (d), (e), or (f), a | ||
covenant or promise in, in connection with, or collateral to a | ||
construction contract for engineering or architectural services | ||
related to an improvement to real property is void and | ||
unenforceable to the extent the covenant or promise provides that a | ||
licensed engineer or registered architect must defend a party, | ||
including a third party, against a claim based wholly or partly on | ||
the negligence of, fault of, or breach of contract by the owner, the | ||
owner's agent, the owner's employee, or another entity over which | ||
the owner exercises control. A covenant or promise in, in | ||
connection with, or collateral to a contract for engineering or | ||
architectural services related to an improvement to real property | ||
may provide for the reimbursement of an owner's reasonable | ||
attorney's fees in proportion to the engineer's or architect's | ||
liability. | ||
(d) Notwithstanding Subsection (c), an owner that is a party | ||
to a contract for engineering or architectural services related to | ||
an improvement to real property may require in the contract that the | ||
engineer or architect name the owner as an additional insured under | ||
any of the engineer's or architect's insurance coverage to the | ||
extent additional insureds are allowed under the policy and provide | ||
any defense to the owner provided by the policy to a named insured. | ||
(e) Subsection (c) does not apply to a contract for services | ||
in which an owner contracts with an entity to provide both design | ||
and construction services. | ||
(f) Subsection (c) does not apply to a covenant to defend a | ||
party, including a third party, for a claim of negligent hiring of | ||
the architect or engineer. | ||
SECTION 3. Chapter 130, Civil Practice and Remedies Code, | ||
is amended by adding Section 130.0021 to read as follows: | ||
Sec. 130.0021. ARCHITECT'S OR ENGINEER'S STANDARD OF CARE. | ||
(a) A construction contract for architectural or engineering | ||
services or a contract related to the construction or repair of an | ||
improvement to real property that contains architectural or | ||
engineering services as a component part must require that the | ||
architectural or engineering services be performed with the | ||
professional skill and care ordinarily provided by competent | ||
architects or engineers practicing under the same or similar | ||
circumstances and professional license. | ||
(b) If a contract described by Subsection (a) contains a | ||
provision establishing a different standard of care than the | ||
standard described by Subsection (a): | ||
(1) the provision is void and unenforceable; and | ||
(2) the standard of care described by Subsection (a) | ||
applies to the performance of the architectural or engineering | ||
services. | ||
(c) Section 130.004 does not limit the applicability of this | ||
section. | ||
SECTION 4. Section 130.004, Civil Practice and Remedies | ||
Code, is amended to read as follows: | ||
Sec. 130.004. OWNER OF INTEREST IN REAL PROPERTY. (a) | ||
Except as provided by Section 130.002(b) or (c) or Section | ||
130.0021, this chapter does not apply to an owner of an interest in | ||
real property or persons employed solely by that owner. | ||
(b) Except as provided by Section 130.002(b) or (c) or | ||
Section 130.0021, this chapter does not prohibit or make void or | ||
unenforceable a covenant or promise to: | ||
(1) indemnify or hold harmless an owner of an interest | ||
in real property and persons employed solely by that owner; or | ||
(2) allocate, release, liquidate, limit, or exclude | ||
liability in connection with a construction contract between an | ||
owner or other person for whom a construction contract is being | ||
performed and a registered architect or licensed engineer. | ||
SECTION 5. (a) Section 130.002(c), Civil Practice and | ||
Remedies Code, as added by this Act, applies only to a covenant or | ||
promise in, in connection with, or collateral to a contract entered | ||
into on or after the effective date of this Act. | ||
(b) Sections 130.002(d) and 130.0021, Civil Practice and | ||
Remedies Code, as added by this Act, apply only to a contract | ||
entered into on or after the effective date of this Act. | ||
SECTION 6. This Act takes effect September 1, 2021. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I certify that H.B. No. 2116 was passed by the House on April | ||
21, 2021, by the following vote: Yeas 126, Nays 21, 1 present, not | ||
voting; and that the House concurred in Senate amendments to H.B. | ||
No. 2116 on May 28, 2021, by the following vote: Yeas 136, Nays 6, | ||
2 present, not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
I certify that H.B. No. 2116 was passed by the Senate, with | ||
amendments, on May 24, 2021, by the following vote: Yeas 28, Nays | ||
2. | ||
______________________________ | ||
Secretary of the Senate | ||
APPROVED: __________________ | ||
Date | ||
__________________ | ||
Governor |