Texas Senate Bill SB799

Texas 2015 - 84th Regular

Caption

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.