Texas 2011 82nd Regular

Texas House Bill HB3607 Comm Sub / Bill

                    82R14081 MXM-F
 By: Kuempel, Howard of Fort Bend H.B. No. 3607


 A BILL TO BE ENTITLED
 AN ACT
 relating to construction managers-at-risk used by local
 governments.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  Section 271.118(c), Local Government Code, is
 amended to read as follows:
 (c)  Before or concurrently with selecting a construction
 manager-at-risk, the governmental entity shall select or designate
 an engineer or architect who shall prepare the construction
 documents for the project and who has full responsibility for
 complying with Chapter 1001 or 1051, Occupations Code, as
 applicable. If the engineer or architect is not a full-time
 employee of the governmental entity, the governmental entity shall
 select the engineer or architect on the basis of demonstrated
 competence and qualifications as provided by Section 2254.004,
 Government Code. The governmental entity's engineer, architect, or
 construction manager-agent for a project may not serve, alone or in
 combination with another, as the construction manager-at-risk
 [unless the engineer or architect is hired to serve as the
 construction manager-at-risk under a separate or concurrent
 procurement conducted in accordance with this subchapter].
 SECTION 2.  Subchapter H, Chapter 271, Local Government
 Code, is amended by adding Section 271.1181 to read as follows:
 Sec. 271.1181.  LIMITATION ON CONSTRUCTION MANAGER-AT-RISK
 CONTRACTS.  (a)  A construction manager-at-risk contract may not be
 awarded to:
 (1)  a governmental entity's engineer, architect,
 construction manager-agent, or program director; or
 (2)  a sole proprietor, corporation, partnership,
 limited liability company, or other entity that is a subsidiary,
 parent corporation, or partner or has any other relationship in
 which the governmental entity's engineer, architect, construction
 manager-agent, or program director has an ownership interest, or is
 subject to common ownership or control, or is party to an agreement
 by which it will receive any proceeds of the construction
 manager-at-risk's payments from the governmental entity.
 (b)  A contract awarded in violation of this section is void
 as contrary to public policy.
 (c)  This section does not apply to:
 (1)  a public corporation in which three percent or
 less of the outstanding stock is owned by a governmental entity's
 architect or engineer; or
 (2)  a person who enters into a joint venture for a
 project or contract unrelated to the current project for which a
 construction manager-at-risk is being selected.
 SECTION 3.  This Act applies only to a contract for the
 services of a construction manager-at-risk 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.
 SECTION 4.  This Act takes effect September 1, 2011.