Texas Senate Bill SB1953

Texas 2017 - 85th Regular

Caption

Relating to indemnification and duties of engineers and architects under certain governmental contracts.

Impact

The implications of SB 1953 are substantial for both contractors and state governmental entities. By allowing state entities to require indemnification from contractors, the bill underscores a shift towards greater contractor accountability. This change also serves to protect the state's interests, reducing potential financial liabilities resulting from contractor negligence. Nevertheless, the bill will only affect contracts where a request for proposals or qualifications is published after the bill's effective date; pre-existing contracts will remain governed by the prior law. This provision ensures a transition period for entities already engaged in the contracting process.

Summary

Senate Bill 1953 introduces significant amendments to the indemnification clauses related to contracts for engineering and architectural services provided to state governmental entities in Texas. The bill specifically allows state governmental entities to require contractors to indemnify the state from claims arising due to negligent acts or omissions by the contractor or its employees. However, it explicitly prevents state agencies from imposing similar indemnification requirements for claims resulting from the negligent acts of the state itself or its employees. This measure aims to limit the liability of state entities while enhancing the accountability of contractors in governmental projects.

Contention

Discussion surrounding SB 1953 highlighted several points of contention. Proponents of the bill argued that it is necessary for protecting taxpayer interests and ensuring that contractors take full responsibility for their work. Conversely, critics raised concerns about the fairness of shifting all liability to contractors, potentially dissuading them from engaging in state contracts due to increased risks. Overall, the debate emphasized the balance that must be struck between protecting state interests and fostering a competitive environment for contractors.