Bill Text: TX HB2901 | 2019-2020 | 86th Legislature | Comm Sub
Bill Title: Relating to civil liability and responsibility for the consequences of defects in the plans, specifications, or related documents for the construction or repair of an improvement to real property.
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced - Dead) 2019-04-26 - Committee report sent to Calendars [HB2901 Detail]
Download: Texas-2019-HB2901-Comm_Sub.html
| 86R25530 AJA-F | |||
| By: Leach | H.B. No. 2901 | ||
| Substitute the following for H.B. No. 2901: | |||
| By: White | C.S.H.B. No. 2901 | ||
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| relating to civil liability and responsibility for the consequences | ||
| of defects in the plans, specifications, or related documents for | ||
| the construction or repair of an improvement to real property. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Title 4, Business & Commerce Code, is amended by | ||
| adding Chapter 59 to read as follows: | ||
| CHAPTER 59. RESPONSIBILITY FOR DEFECTS IN PLANS AND SPECIFICATIONS | ||
| SUBCHAPTER A. GENERAL PROVISIONS | ||
| Sec. 59.001. DEFINITIONS. In this chapter: | ||
| (1) "Construction" includes: | ||
| (A) the initial construction of an improvement to | ||
| real property; | ||
| (B) the construction of an addition to an | ||
| improvement to real property; or | ||
| (C) the repair, alteration, or remodeling of an | ||
| improvement to real property. | ||
| (2) "Contractor" means a person engaged in the | ||
| business of developing, constructing, fabricating, repairing, | ||
| altering, or remodeling improvements to real property. | ||
| (3) "Critical infrastructure facility" has the | ||
| meaning assigned by Section 423.0045, Government Code. | ||
| (4) "Subcontractor" means a contractor directly | ||
| retained and compensated by another contractor to perform labor or | ||
| perform labor and supply materials in the construction. | ||
| SUBCHAPTER B. CONTRACTOR RESPONSIBILITY | ||
| Sec. 59.051. APPLICABILITY OF SUBCHAPTER. (a) This | ||
| subchapter applies only to a contract for the construction or | ||
| repair of an improvement to real property. | ||
| (b) This subchapter does not apply to a contract entered | ||
| into by a person for the construction or repair of a critical | ||
| infrastructure facility owned or operated by the person or any | ||
| building, structure, improvement, appurtenance, or other facility | ||
| owned by the person that is necessary to the business operations | ||
| associated with the critical infrastructure facility. For purposes | ||
| of this subsection, "person" includes a parent, subsidiary, | ||
| affiliated entity, joint venture partner, or owner of the person. | ||
| Sec. 59.052. LIMITATION ON CONTRACTOR'S LIABILITY AND | ||
| RESPONSIBILITY FOR CERTAIN DEFECTS. (a) A contractor is not | ||
| responsible for the consequences of defects in and may not warranty | ||
| the accuracy, adequacy, sufficiency, or suitability of plans, | ||
| specifications, or other design or bid documents provided to the | ||
| contractor by: | ||
| (1) the person with whom the contractor entered into | ||
| the contract; or | ||
| (2) another person on behalf of the person with whom | ||
| the contractor entered into the contract. | ||
| (b) A contractor must disclose in writing to the person with | ||
| whom the contractor enters into a contract the existence of any | ||
| known defect in the plans, specifications, or other design or bid | ||
| documents discovered by the contractor before or during | ||
| construction. | ||
| (c) A contractor who fails to disclose a condition as | ||
| required by Subsection (b) may be liable for defects that result | ||
| from the failure to disclose. | ||
| Sec. 59.053. WAIVER OF SUBCHAPTER ON PUBLIC PROJECT. This | ||
| subchapter may not be waived by a contractor, subcontractor, or | ||
| owner on a public contract. | ||
| Sec. 59.054. WAIVER OF SUBCHAPTER ON PRIVATE PROJECT. (a) | ||
| Except as provided by Subsection (b), this subchapter may not be | ||
| waived on a private contract. | ||
| (b) This subchapter may be waived only by written agreement. | ||
| To be enforceable, the written agreement must: | ||
| (1) clearly and prominently state that the parties | ||
| agree to waive specifically this subchapter in its entirety; | ||
| (2) identify the specific plans, specifications, or | ||
| other design or bid documents to which the waiver applies; and | ||
| (3) be signed by the contractor on a date that is not | ||
| earlier than the date the contractor receives the plans, | ||
| specifications, or other design or bid documents to which the | ||
| waiver applies. | ||
| (c) A purported waiver of this subchapter in violation of | ||
| this section is void. | ||
| SECTION 2. Subchapter A, Chapter 2254, Government Code, is | ||
| amended by adding Section 2254.0041 to read as follows: | ||
| Sec. 2254.0041. ARCHITECT'S OR ENGINEER'S STANDARD OF CARE. | ||
| (a) A governmental entity may not require in a contract for | ||
| engineering or architectural services related to the construction | ||
| or repair of an improvement to real property, or in a contract | ||
| related to the construction or repair of an improvement to real | ||
| property that contains engineering or architectural services as a | ||
| component part, that the engineering or architectural services be | ||
| performed to a level of professional skill and care beyond that | ||
| which would be provided by an ordinarily prudent engineer or | ||
| architect with the same professional license under the same or | ||
| similar circumstances. | ||
| (b) Nothing in this section prevents a party to a contract | ||
| for engineering or architectural services from enforcing specific | ||
| obligations in the contract that are separate from the standard of | ||
| care. | ||
| SECTION 3. (a) The changes in law made by this Act apply | ||
| only to a contract entered into on or after the effective date of | ||
| this Act. A contract entered into before the effective date of this | ||
| Act is governed by the law in effect when the contract was entered | ||
| into, and the former law is continued in effect for that purpose. | ||
| (b) An original contract for the construction or repair of | ||
| an improvement to real property with the owner of an interest in | ||
| real property that is entered into before the effective date of this | ||
| Act, and a subcontract or purchase order for providing labor or | ||
| materials associated with that original contract, whether the | ||
| subcontract or purchase order is entered into before, on, or after | ||
| the effective date of this Act, is governed by the law in effect | ||
| when the original contract was entered into, and the former law is | ||
| continued in effect for that purpose. | ||
| SECTION 4. This Act takes effect September 1, 2019. | ||
