Texas 2025 89th Regular

Texas Senate Bill SB687 Introduced / Bill

Filed 12/20/2024

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                    89R1463 MZM-F
 By: Hughes S.B. No. 687




 A BILL TO BE ENTITLED
 AN ACT
 relating to liability for land surveying services in or in
 connection with certain construction or services contracts.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  Section 130.001, Civil Practice and Remedies
 Code, is amended to read as follows:
 Sec. 130.001.  DEFINITIONS [DEFINITION]. In this chapter:
 (1)  "Construction ["construction] contract" means a
 contract or agreement made and entered into by an owner,
 contractor, subcontractor, registered architect, licensed
 engineer, land surveyor, or supplier concerning the design,
 construction, alteration, repair, or maintenance of a building,
 structure, appurtenance, road, highway, bridge, dam, levee, or
 other improvement to or on real property, including moving,
 demolition, and excavation connected with the real property.
 (2)  "Land surveyor" means a registered professional
 land surveyor or licensed state land surveyor as those terms are
 defined by Section 1071.002, Occupations Code.
 SECTION 2.  Sections 130.002(a), (b), (c), (d), and (f),
 Civil Practice and Remedies Code, are amended to read as follows:
 (a)  A covenant or promise in, in connection with, or
 collateral to a construction contract is void and unenforceable if
 the covenant or promise provides for a contractor who is to perform
 the work that is the subject of the construction contract to
 indemnify or hold harmless a registered architect, licensed
 engineer, or land surveyor, or an agent, servant, or employee of a
 registered architect, [or] licensed engineer, or land surveyor from
 liability for damage that:
 (1)  is caused by or results from:
 (A)  defects in plans, designs, or specifications
 prepared, approved, or used by the architect, [or] engineer, or
 land surveyor; or
 (B)  negligence of the architect, [or] engineer,
 or land surveyor in the rendition or conduct of professional duties
 called for or arising out of the construction contract and the
 plans, designs, or specifications that are a part of the
 construction contract; and
 (2)  arises from:
 (A)  personal injury or death;
 (B)  property injury; or
 (C)  any other expense that arises from personal
 injury, death, or property injury.
 (b)  A covenant or promise in, in connection with, or
 collateral to a construction contract other than a contract for a
 single family or multifamily residence is void and unenforceable if
 the covenant or promise provides for a registered architect, [or]
 licensed engineer, or land surveyor whose engineering, [or]
 architectural, or land surveying design services are the subject of
 the construction contract to indemnify or hold harmless an owner or
 owner's agent or employee from liability for damage that is caused
 by or results from the negligence of an owner or an owner's agent or
 employee.
 (c)  Except as provided by Subsection (d), (e), or (f), a
 covenant or promise in, in connection with, or collateral to a
 construction contract for engineering, [or] architectural, or land
 surveying services related to an improvement to real property is
 void and unenforceable to the extent the covenant or promise
 provides that a licensed engineer, [or] registered architect, or
 land surveyor must defend a party, including a third party, against
 a claim based wholly or partly on the negligence of, fault of, or
 breach of contract by the owner, the owner's agent, the owner's
 employee, or another entity over which the owner exercises
 control.  A covenant or promise in, in connection with, or
 collateral to a contract for engineering, [or] architectural, or
 land surveying services related to an improvement to real property
 may provide for the reimbursement of an owner's reasonable
 attorney's fees in proportion to the engineer's, [or] architect's,
 or land surveyor's liability.
 (d)  Notwithstanding Subsection (c), an owner that is a party
 to a contract for engineering, [or] architectural, or land
 surveying services related to an improvement to real property may
 require in the contract that the engineer, [or] architect, or land
 surveyor name the owner as an additional insured under any of the
 engineer's, [or] architect's, or land surveyor's insurance coverage
 to the extent additional insureds are allowed under the policy and
 provide any defense to the owner provided by the policy to a named
 insured.
 (f)  Subsection (c) does not apply to a covenant to defend a
 party, including a third party, for a claim of negligent hiring of
 the architect, [or] engineer, or land surveyor.
 SECTION 3.  The heading to Section 130.0021, Civil Practice
 and Remedies Code, is amended to read as follows:
 Sec. 130.0021.  ARCHITECT'S, [OR] ENGINEER'S, OR LAND
 SURVEYOR'S STANDARD OF CARE.
 SECTION 4.  Sections 130.0021(a) and (b), Civil Practice and
 Remedies Code, are amended to read as follows:
 (a)  A construction contract for architectural, [or]
 engineering, or land surveying services or a contract related to
 the construction or repair of an improvement to real property that
 contains architectural, [or] engineering, or land surveying
 services as a component part must require that the architectural,
 [or] engineering, or land surveying services be performed with the
 professional skill and care ordinarily provided by competent
 architects, [or] engineers, or land surveyors practicing under the
 same or similar circumstances and professional license.
 (b)  If a contract described by Subsection (a) contains a
 provision establishing a different standard of care than the
 standard described by Subsection (a):
 (1)  the provision is void and unenforceable; and
 (2)  the standard of care described by Subsection (a)
 applies to the performance of the architectural, [or] engineering,
 or land surveying services.
 SECTION 5.  Section 130.004(b), Civil Practice and Remedies
 Code, is amended to read as follows:
 (b)  Except as provided by Section 130.002(b) or (c) or
 Section 130.0021, this chapter does not prohibit or make void or
 unenforceable a covenant or promise to:
 (1)  indemnify or hold harmless an owner of an interest
 in real property and persons employed solely by that owner; or
 (2)  allocate, release, liquidate, limit, or exclude
 liability in connection with a construction contract between an
 owner or other person for whom a construction contract is being
 performed and a registered architect, [or] licensed engineer, or
 land surveyor.
 SECTION 6.  Section 130.005, Civil Practice and Remedies
 Code, is amended to read as follows:
 Sec. 130.005.  APPLICATION OF CHAPTER.  This chapter does
 not apply to a contract or agreement in which an architect, [or]
 engineer, or land surveyor, or an agent, servant, or employee of an
 architect, [or] engineer, or land surveyor is indemnified from
 liability for:
 (1)  negligent acts other than those described by this
 chapter; or
 (2)  negligent acts of the contractor, any
 subcontractor, any person directly or indirectly employed by the
 contractor or a subcontractor, or any person for whose acts the
 contractor or a subcontractor may be liable.
 SECTION 7.  Section 271.904, Local Government Code, is
 amended to read as follows:
 Sec. 271.904.  ENGINEERING, [OR] ARCHITECTURAL, OR LAND
 SURVEYING SERVICES CONTRACTS: INDEMNIFICATION LIMITATIONS; DUTIES
 OF ENGINEER, [OR] ARCHITECT, OR LAND SURVEYOR.  (a)  A covenant or
 promise in, in connection with, or collateral to a contract for
 engineering, [or] architectural, or land surveying services to
 which a governmental agency is a party is void and unenforceable if
 the covenant or promise provides that a licensed engineer, [or]
 registered architect, or land surveyor whose work product is the
 subject of the contract must indemnify or hold harmless the
 governmental agency against liability for damage, other than
 liability for damage to the extent that the damage is caused by or
 results from an act of negligence, intentional tort, intellectual
 property infringement, or failure to pay a subcontractor or
 supplier committed by the indemnitor or the indemnitor's agent,
 consultant under contract, or another entity over which the
 indemnitor exercises control.
 (b)  Except as provided by Subsection (c), a covenant or
 promise in, in connection with, or collateral to a contract for
 engineering, [or] architectural, or land surveying services to
 which a governmental agency is a party is void and unenforceable if
 the covenant or promise provides that a licensed engineer, [or]
 registered architect, or land surveyor whose work product is the
 subject of the contract must defend a party, including a third
 party, against a claim based wholly or partly on the negligence of,
 fault of, or breach of contract by the governmental agency, the
 agency's agent, the agency's employee, or other entity, excluding
 the engineer, [or] architect, or land surveyor or that person's
 agent, employee, or subconsultant, over which the governmental
 agency exercises control.  A covenant or promise may provide for
 the reimbursement of a governmental agency's reasonable attorney's
 fees in proportion to the engineer's, [or] architect's, or land
 surveyor's liability.
 (c)  Notwithstanding Subsection (b), a governmental agency
 may require in a contract for engineering, [or] architectural, or
 land surveying services to which the governmental agency is a party
 that the engineer, [or] architect, or land surveyor name the
 governmental agency as an additional insured under the engineer's,
 [or] architect's, or land surveyor's general liability insurance
 policy and provide any defense provided by the policy.
 (d)  A contract for engineering, [or] architectural, or land
 surveying services to which a governmental agency is a party must
 require a licensed engineer, [or] registered architect, or land
 surveyor to perform services:
 (1)  with the professional skill and care ordinarily
 provided by competent engineers, [or] architects, or land surveyors
 practicing under the same or similar circumstances and professional
 license; and
 (2)  as expeditiously as is prudent considering the
 ordinary professional skill and care of a competent engineer, [or]
 architect, or land surveyor.
 (e)  In a contract for engineering, [or] architectural, or
 land surveying services to which a governmental agency is a party, a
 provision establishing a different standard of care than a standard
 described by Subsection (d) is void and unenforceable.  If a
 contract contains a void and unenforceable provision, the standard
 of care described by Subsection (d) applies.
 (f)  In this section:
 (1)  "Governmental [, "governmental] agency" has the
 meaning assigned by Section 271.003.
 (2)  "Land surveyor" means a registered professional
 land surveyor or licensed state land surveyor as those terms are
 defined by Section 1071.002, Occupations Code.
 (g)  Nothing in this section prohibits a governmental agency
 in a contract for engineering, [or] architectural, or land
 surveying services to which the governmental agency is a party from
 including and enforcing conditions that relate to the scope, fees,
 and schedule of a project in the contract.
 SECTION 8.  The change in law made by this Act applies only
 to a contract or covenant or promise in, in connection with, or
 collateral to a construction contract entered into on or after the
 effective date of this Act.  A contract or covenant or promise in,
 in connection with, or collateral to a construction contract
 entered into before the effective date of this Act is governed by
 the law applicable to the contract or covenant or promise
 immediately before the effective date of this Act, and that law is
 continued in effect for that purpose.
 SECTION 9.  This Act takes effect September 1, 2025.