Texas 2019 - 86th Regular

Texas House Bill HB2901 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	86R25530 AJA-F
2	1		By: Leach H.B. No. 2901
3		-	Substitute the following for H.B. No. 2901:
4		-	By: White C.S.H.B. No. 2901
5	2
6	3
7	4		A BILL TO BE ENTITLED
8	5		AN ACT
9	6		relating to civil liability and responsibility for the consequences
10	7		of defects in the plans, specifications, or related documents for
11	8		the construction or repair of an improvement to real property.
12	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	10		SECTION 1. Title 4, Business & Commerce Code, is amended by
14	11		adding Chapter 59 to read as follows:
15	12		CHAPTER 59. RESPONSIBILITY FOR DEFECTS IN PLANS AND SPECIFICATIONS
16		-	SUBCHAPTER A. GENERAL PROVISIONS
17		-	Sec. 59.001. DEFINITIONS. In this chapter:
18		-	(1) "Construction" includes:
19		-	(A) the initial construction of an improvement to
20		-	real property;
21		-	(B) the construction of an addition to an
22		-	improvement to real property; or
23		-	(C) the repair, alteration, or remodeling of an
24		-	improvement to real property.
25		-	(2) "Contractor" means a person engaged in the
26		-	business of developing, constructing, fabricating, repairing,
27		-	altering, or remodeling improvements to real property.
28		-	(3) "Critical infrastructure facility" has the
29		-	meaning assigned by Section 423.0045, Government Code.
30		-	(4) "Subcontractor" means a contractor directly
31		-	retained and compensated by another contractor to perform labor or
32		-	perform labor and supply materials in the construction.
33		-	SUBCHAPTER B. CONTRACTOR RESPONSIBILITY
34		-	Sec. 59.051. APPLICABILITY OF SUBCHAPTER. (a) This
35		-	subchapter applies only to a contract for the construction or
36		-	repair of an improvement to real property.
37		-	(b) This subchapter does not apply to a contract entered
38		-	into by a person for the construction or repair of a critical
39		-	infrastructure facility owned or operated by the person or any
40		-	building, structure, improvement, appurtenance, or other facility
41		-	owned by the person that is necessary to the business operations
42		-	associated with the critical infrastructure facility. For purposes
43		-	of this subsection, "person" includes a parent, subsidiary,
44		-	affiliated entity, joint venture partner, or owner of the person.
45		-	Sec. 59.052. LIMITATION ON CONTRACTOR'S LIABILITY AND
46		-	RESPONSIBILITY FOR CERTAIN DEFECTS. (a) A contractor is not
47		-	responsible for the consequences of defects in and may not warranty
48		-	the accuracy, adequacy, sufficiency, or suitability of plans,
49		-	specifications, or other design or bid documents provided to the
50		-	contractor by:
	13	+	Sec. 59.001. APPLICABILITY. This chapter applies only to a
	14	+	contract for the construction or repair of an improvement to real
	15	+	property.
	16	+	Sec. 59.002. DEFINITION. In this chapter, "contractor"
	17	+	means a person required to perform work under a contract.
	18	+	Sec. 59.003. LIMITATION ON CONTRACTOR'S LIABILITY AND
	19	+	RESPONSIBILITY FOR CERTAIN DEFECTS. A contractor is not civilly
	20	+	liable or otherwise responsible for the consequences of defects in
	21	+	and may not warranty the accuracy, adequacy, sufficiency, or
	22	+	suitability of plans, specifications, or other design or bid
	23	+	documents provided to the contractor by:
51	24		(1) the person with whom the contractor entered into
52	25		the contract; or
53	26		(2) another person on behalf of the person with whom
54	27		the contractor entered into the contract.
55		-	(b) A contractor must disclose in writing to the person with
56		-	whom the contractor enters into a contract the existence of any
57		-	known defect in the plans, specifications, or other design or bid
58		-	documents discovered by the contractor before or during
59		-	construction.
60		-	(c) A contractor who fails to disclose a condition as
61		-	required by Subsection (b) may be liable for defects that result
62		-	from the failure to disclose.
63		-	Sec. 59.053. WAIVER OF SUBCHAPTER ON PUBLIC PROJECT. This
64		-	subchapter may not be waived by a contractor, subcontractor, or
65		-	owner on a public contract.
66		-	Sec. 59.054. WAIVER OF SUBCHAPTER ON PRIVATE PROJECT. (a)
67		-	Except as provided by Subsection (b), this subchapter may not be
68		-	waived on a private contract.
69		-	(b) This subchapter may be waived only by written agreement.
70		-	To be enforceable, the written agreement must:
71		-	(1) clearly and prominently state that the parties
72		-	agree to waive specifically this subchapter in its entirety;
73		-	(2) identify the specific plans, specifications, or
74		-	other design or bid documents to which the waiver applies; and
75		-	(3) be signed by the contractor on a date that is not
76		-	earlier than the date the contractor receives the plans,
77		-	specifications, or other design or bid documents to which the
78		-	waiver applies.
79		-	(c) A purported waiver of this subchapter in violation of
80		-	this section is void.
81		-	SECTION 2. Subchapter A, Chapter 2254, Government Code, is
82		-	amended by adding Section 2254.0041 to read as follows:
83		-	Sec. 2254.0041. ARCHITECT'S OR ENGINEER'S STANDARD OF CARE.
84		-	(a) A governmental entity may not require in a contract for
85		-	engineering or architectural services related to the construction
86		-	or repair of an improvement to real property, or in a contract
87		-	related to the construction or repair of an improvement to real
88		-	property that contains engineering or architectural services as a
89		-	component part, that the engineering or architectural services be
90		-	performed to a level of professional skill and care beyond that
91		-	which would be provided by an ordinarily prudent engineer or
92		-	architect with the same professional license under the same or
93		-	similar circumstances.
94		-	(b) Nothing in this section prevents a party to a contract
95		-	for engineering or architectural services from enforcing specific
96		-	obligations in the contract that are separate from the standard of
97		-	care.
98		-	SECTION 3. (a) The changes in law made by this Act apply
99		-	only to a contract entered into on or after the effective date of
100		-	this Act. A contract entered into before the effective date of this
101		-	Act is governed by the law in effect when the contract was entered
102		-	into, and the former law is continued in effect for that purpose.
	28	+	Sec. 59.004. WAIVER OF CHAPTER. This chapter may not be
	29	+	waived by any means. A purported waiver of this chapter is void.
	30	+	SECTION 2. (a) The changes in law made by this Act apply
	31	+	only to a contract for the construction or repair of an improvement
	32	+	to real property entered into on or after the effective date of this
	33	+	Act.
	34	+	A contract entered into before the effective date of this Act
	35	+	is governed by the law in effect when the contract was entered into,
	36	+	and the former law is continued in effect for that purpose.
103	37		(b) An original contract for the construction or repair of
104	38		an improvement to real property with the owner of an interest in
105	39		real property that is entered into before the effective date of this
106	40		Act, and a subcontract or purchase order for providing labor or
107	41		materials associated with that original contract, whether the
108	42		subcontract or purchase order is entered into before, on, or after
109	43		the effective date of this Act, is governed by the law in effect
110	44		when the original contract was entered into, and the former law is
111	45		continued in effect for that purpose.
112		-	SECTION 4. This Act takes effect September 1, 2019.
	46	+	SECTION 3. This Act takes effect September 1, 2019.