| 1 | 1 | | 86R1902 SCL-F |
|---|
| 2 | 2 | | By: Hughes S.B. No. 737 |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | A BILL TO BE ENTITLED |
|---|
| 6 | 6 | | AN ACT |
|---|
| 7 | 7 | | relating to adjudication of claims arising from certain written |
|---|
| 8 | 8 | | contracts with state agencies. |
|---|
| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 10 | 10 | | SECTION 1. Section 114.003, Civil Practice and Remedies |
|---|
| 11 | 11 | | Code, is amended to read as follows: |
|---|
| 12 | 12 | | Sec. 114.003. WAIVER OF IMMUNITY TO SUIT FOR CERTAIN |
|---|
| 13 | 13 | | CLAIMS. A state agency that is authorized by statute or the |
|---|
| 14 | 14 | | constitution to enter into a contract and that enters into a |
|---|
| 15 | 15 | | contract subject to this chapter waives sovereign immunity to suit |
|---|
| 16 | 16 | | for the purpose of adjudicating a claim for breach [of an express |
|---|
| 17 | 17 | | provision] of the contract, subject to the terms and conditions of |
|---|
| 18 | 18 | | this chapter. |
|---|
| 19 | 19 | | SECTION 2. Section 114.004, Civil Practice and Remedies |
|---|
| 20 | 20 | | Code, is amended to read as follows: |
|---|
| 21 | 21 | | Sec. 114.004. LIMITATIONS ON ADJUDICATION AWARDS. (a) The |
|---|
| 22 | 22 | | total amount of money awarded in an adjudication brought against a |
|---|
| 23 | 23 | | state agency for breach [of an express provision] of a contract |
|---|
| 24 | 24 | | subject to this chapter is limited to the following: |
|---|
| 25 | 25 | | (1) the balance due and owed by the state agency under |
|---|
| 26 | 26 | | the contract as it may have been amended, including any amount owed |
|---|
| 27 | 27 | | as compensation for the increased cost to perform the work as a |
|---|
| 28 | 28 | | direct result of owner-caused delays or acceleration [if the |
|---|
| 29 | 29 | | contract expressly provides for that compensation]; |
|---|
| 30 | 30 | | (2) the amount owed for written change orders; |
|---|
| 31 | 31 | | (3) reasonable and necessary attorney's fees that are |
|---|
| 32 | 32 | | equitable and just [based on an hourly rate that are equitable and |
|---|
| 33 | 33 | | just if the contract expressly provides that recovery of attorney's |
|---|
| 34 | 34 | | fees is available to all parties to the contract]; and |
|---|
| 35 | 35 | | (4) interest at the rate specified by the contract or, |
|---|
| 36 | 36 | | if a rate is not specified, the rate for postjudgment interest under |
|---|
| 37 | 37 | | Section 304.003(c), Finance Code, but not to exceed 10 percent. |
|---|
| 38 | 38 | | (b) Damages awarded in an adjudication brought against a |
|---|
| 39 | 39 | | state agency arising under a contract subject to this chapter may |
|---|
| 40 | 40 | | not include: |
|---|
| 41 | 41 | | (1) consequential damages, except as expressly |
|---|
| 42 | 42 | | allowed under Subsection (a)(1); |
|---|
| 43 | 43 | | (2) exemplary damages; or |
|---|
| 44 | 44 | | (3) damages for unabsorbed home office overhead. |
|---|
| 45 | 45 | | SECTION 3. Chapter 114, Civil Practice and Remedies Code, |
|---|
| 46 | 46 | | as amended by this Act, applies only to a claim arising under a |
|---|
| 47 | 47 | | contract executed on or after the effective date of this Act. A |
|---|
| 48 | 48 | | claim that arises under a contract executed before the effective |
|---|
| 49 | 49 | | date of this Act is governed by the law applicable to the claim |
|---|
| 50 | 50 | | immediately before the effective date of this Act, and that law is |
|---|
| 51 | 51 | | continued in effect for that purpose. |
|---|
| 52 | 52 | | SECTION 4. This Act takes effect September 1, 2019. |
|---|