84R6272 SCL-F
By: Workman H.B. No. 1124
A BILL TO BE ENTITLED
AN ACT
relating to adjudication of claims arising from written contracts
with state agencies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 114.002, Civil Practice and Remedies
Code, is amended to read as follows:
Sec. 114.002. APPLICABILITY. This chapter applies only to
a claim for breach of a written contract for engineering,
architectural, or construction services or for materials related to
engineering, architectural, or construction services brought by a
party to the written contract[, in which the amount in controversy
is not less than $250,000, excluding penalties, costs, expenses,
prejudgment interest, and attorney's fees].
SECTION 2. Section 114.003, Civil Practice and Remedies
Code, is amended to read as follows:
Sec. 114.003. WAIVER OF IMMUNITY TO SUIT FOR CERTAIN
CLAIMS. A state agency that is authorized by statute or the
constitution to enter into a contract and that enters into a
contract subject to this chapter waives sovereign immunity to suit
for the purpose of adjudicating a claim for breach [of an express
provision] of the contract, subject to the terms and conditions of
this chapter.
SECTION 3. Section 114.004, Civil Practice and Remedies
Code, is amended to read as follows:
Sec. 114.004. LIMITATIONS ON ADJUDICATION AWARDS. (a) The
total amount of money awarded in an adjudication brought against a
state agency for breach [of an express provision] of a contract
subject to this chapter is limited to the following:
(1) the balance due and owed by the state agency under
the contract as it may have been amended, including any amount owed
as compensation for the increased cost to perform the work as a
direct result of owner-caused delays or acceleration [if the
contract expressly provides for that compensation];
(2) the amount owed for [written] change orders or
additional work the contractor is directed to perform by a state
agency in connection with the contract;
(3) reasonable and necessary attorney's fees that are
equitable and just [based on an hourly rate that are equitable and
just if the contract expressly provides that recovery of attorney's
fees is available to all parties to the contract]; and
(4) interest at the rate specified by the contract or,
if a rate is not specified, the rate for postjudgment interest under
Section 304.003(c), Finance Code, but not to exceed 10 percent.
(b) Damages awarded in an adjudication brought against a
state agency arising under a contract subject to this chapter may
not include:
(1) consequential damages, except as expressly
allowed under Subsection (a)(1);
(2) exemplary damages; or
(3) damages for unabsorbed home office overhead.
SECTION 4. Chapter 114, Civil Practice and Remedies Code,
as amended by this Act, applies only to a claim arising under a
contract executed on or after the effective date of this Act. A
claim that arises under a contract executed before the effective
date of this Act is governed by the law applicable to the claim
immediately before the effective date of this Act, and that law is
continued in effect for that purpose.
SECTION 5. This Act takes effect September 1, 2015.