Relating to indemnification and duties of engineers and architects under certain governmental contracts.
Impact
This legislation is designed to shift the liability landscape for engineers and architects working with governmental entities. By nullifying broader indemnification clauses, it seeks to protect these professionals from being held liable for issues outside their direct control. As a result, this could lead to more balanced risk-sharing in contracts between governmental agencies and the engineering and architecture sectors, positively affecting professional standards and practices in the industry.
Summary
SB799 aims to amend Section 271.904 of the Local Government Code to redefine the limits of indemnification in contracts for engineering and architectural services involving governmental agencies. The bill specifies that any indemnification clause requiring a licensed engineer or registered architect to indemnify the governmental entity against certain liabilities will be deemed void and unenforceable. This restriction focuses primarily on liabilities arising from negligence, intentional torts, and failures in payments to subcontractors, thereby offering better protection for professionals in these fields.
Contention
The discussions surrounding SB799 may present certain points of contention, primarily focused on the balance of risk and responsibility between governmental agencies and engineering or architectural professionals. Supporters argue that the legislation promotes fairness and protects professionals from excessive liabilities that can stem from third-party actions or circumstances beyond their oversight. However, concerns may arise related to the potential for government entities to face challenges in recouping costs tied to negligence or other liabilities, which could lead to budgetary constraints or project delays.
Relating to the procurement by local governments of energy savings performance contracts for certain conservation measures; creating criminal offenses; authorizing a fee.
Relating to the powers and duties of the Health and Human Services Commission and the transfer to the commission of certain powers and duties from the Department of Family and Protective Services.