Texas 2015 - 84th Regular

Texas House Bill HB1124 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	84R6272 SCL-F
2	2	By: Workman H.B. No. 1124
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to adjudication of claims arising from written contracts
8	8	with state agencies.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 114.002, Civil Practice and Remedies
11	11	Code, is amended to read as follows:
12	12	Sec. 114.002. APPLICABILITY. This chapter applies only to
13	13	a claim for breach of a written contract for engineering,
14	14	architectural, or construction services or for materials related to
15	15	engineering, architectural, or construction services brought by a
16	16	party to the written contract[, in which the amount in controversy
17	17	is not less than $250,000, excluding penalties, costs, expenses,
18	18	prejudgment interest, and attorney's fees].
19	19	SECTION 2. Section 114.003, Civil Practice and Remedies
20	20	Code, is amended to read as follows:
21	21	Sec. 114.003. WAIVER OF IMMUNITY TO SUIT FOR CERTAIN
22	22	CLAIMS. A state agency that is authorized by statute or the
23	23	constitution to enter into a contract and that enters into a
24	24	contract subject to this chapter waives sovereign immunity to suit
25	25	for the purpose of adjudicating a claim for breach [of an express
26	26	provision] of the contract, subject to the terms and conditions of
27	27	this chapter.
28	28	SECTION 3. Section 114.004, Civil Practice and Remedies
29	29	Code, is amended to read as follows:
30	30	Sec. 114.004. LIMITATIONS ON ADJUDICATION AWARDS. (a) The
31	31	total amount of money awarded in an adjudication brought against a
32	32	state agency for breach [of an express provision] of a contract
33	33	subject to this chapter is limited to the following:
34	34	(1) the balance due and owed by the state agency under
35	35	the contract as it may have been amended, including any amount owed
36	36	as compensation for the increased cost to perform the work as a
37	37	direct result of owner-caused delays or acceleration [if the
38	38	contract expressly provides for that compensation];
39	39	(2) the amount owed for [written] change orders or
40	40	additional work the contractor is directed to perform by a state
41	41	agency in connection with the contract;
42	42	(3) reasonable and necessary attorney's fees that are
43	43	equitable and just [based on an hourly rate that are equitable and
44	44	just if the contract expressly provides that recovery of attorney's
45	45	fees is available to all parties to the contract]; and
46	46	(4) interest at the rate specified by the contract or,
47	47	if a rate is not specified, the rate for postjudgment interest under
48	48	Section 304.003(c), Finance Code, but not to exceed 10 percent.
49	49	(b) Damages awarded in an adjudication brought against a
50	50	state agency arising under a contract subject to this chapter may
51	51	not include:
52	52	(1) consequential damages, except as expressly
53	53	allowed under Subsection (a)(1);
54	54	(2) exemplary damages; or
55	55	(3) damages for unabsorbed home office overhead.
56	56	SECTION 4. Chapter 114, Civil Practice and Remedies Code,
57	57	as amended by this Act, applies only to a claim arising under a
58	58	contract executed on or after the effective date of this Act. A
59	59	claim that arises under a contract executed before the effective
60	60	date of this Act is governed by the law applicable to the claim
61	61	immediately before the effective date of this Act, and that law is
62	62	continued in effect for that purpose.
63	63	SECTION 5. This Act takes effect September 1, 2015.