Texas 2019 - 86th Regular

Texas House Bill HB1185 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
	1	+	86R23841 SCL-F
1	2		By: Cyrier H.B. No. 1185
	3	+	Substitute the following for H.B. No. 1185:
	4	+	By: Krause C.S.H.B. No. 1185
2	5
3	6
4	7		A BILL TO BE ENTITLED
5	8		AN ACT
6	9		relating to limitations on adjudication awards arising from certain
7	10		written contracts with state agencies.
8	11		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9		-	SECTION 1. Section 114.002, Civil Practice and Remedies
10		-	Code, is amended to read as follows:
11		-	Sec. 114.002. APPLICABILITY. This chapter applies only to
12		-	a claim for breach of a written contract that is related to real
13		-	property or improvements to real property and is for engineering,
14		-	architectural, or construction services or for materials related to
15		-	engineering, architectural, or construction services, brought by a
16		-	party to the written contract, in which the amount in controversy is
17		-	not less than $250,000, excluding penalties, costs, expenses,
18		-	prejudgment interest, and attorney's fees.
19		-	SECTION 2. Section 114.004, Civil Practice and Remedies
	12	+	SECTION 1. Section 114.004, Civil Practice and Remedies
20	13		Code, is amended to read as follows:
21	14		Sec. 114.004. LIMITATIONS ON ADJUDICATION AWARDS. (a) The
22	15		total amount of money awarded in an adjudication brought against a
23	16		state agency for breach of an express provision of a contract
24	17		subject to this chapter is limited to the following:
25	18		(1) the balance due and owed by the state agency under
26	19		the contract as it may have been amended, including any amount owed
27	20		as compensation for the increased cost to perform the work as a
28	21		direct result of owner-caused delays or acceleration [if the
29	22		contract expressly provides for that compensation];
30	23		(2) the amount owed for written change orders;
31	24		(3) reasonable and necessary attorney's fees that are
32	25		equitable and just [based on an hourly rate that are equitable and
33	26		just if the contract expressly provides that recovery of attorney's
34	27		fees is available to all parties to the contract]; and
35	28		(4) interest at the rate specified by the contract or,
36	29		if a rate is not specified, the rate for postjudgment interest under
37	30		Section 304.003(c), Finance Code, but not to exceed 10 percent.
38	31		(b) Damages awarded in an adjudication brought against a
39	32		state agency arising under a contract subject to this chapter may
40	33		not include:
41	34		(1) consequential damages, except as expressly
42	35		allowed under Subsection (a)(1);
43	36		(2) exemplary damages; or
44	37		(3) damages for unabsorbed home office overhead.
45		-	SECTION 3. Chapter 114
46		-	, Civil Practice and Remedies Code,
47		-	as amended by this Act, applies only to a claim arising under a
48		-	contract executed on or after the effective date of this Act. A
	38	+	SECTION 2. Section 114.004, Civil Practice and Remedies
	39	+	Code, as amended by this Act, applies only to a claim arising under
	40	+	a contract executed on or after the effective date of this Act. A
49	41		claim that arises under a contract executed before the effective
50	42		date of this Act is governed by the law as it existed immediately
51	43		before the effective date of this Act, and that law is continued in
52	44		effect for that purpose.
53		-	SECTION 4. This Act takes effect September 1, 2019.
	45	+	SECTION 3. This Act takes effect September 1, 2019.