4 | 7 | | |
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5 | 8 | | |
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6 | 9 | | A BILL TO BE ENTITLED |
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7 | 10 | | AN ACT |
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8 | 11 | | relating to liability for land surveying services in or in |
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9 | 12 | | connection with certain construction or services contracts. |
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10 | 13 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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11 | 14 | | SECTION 1. Section 130.001, Civil Practice and Remedies |
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12 | 15 | | Code, is amended to read as follows: |
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13 | 16 | | Sec. 130.001. DEFINITIONS [DEFINITION]. In this chapter: |
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14 | 17 | | (1) "Construction ["construction] contract" means a |
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15 | 18 | | contract or agreement made and entered into by an owner, |
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16 | 19 | | contractor, subcontractor, registered architect, licensed |
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17 | 20 | | engineer, land surveyor, or supplier concerning the design, |
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18 | 21 | | construction, alteration, repair, or maintenance of a building, |
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19 | 22 | | structure, appurtenance, road, highway, bridge, dam, levee, or |
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20 | 23 | | other improvement to or on real property, including moving, |
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21 | 24 | | demolition, and excavation connected with the real property. |
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22 | 25 | | (2) "Land surveyor" means a registered professional |
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23 | 26 | | land surveyor or licensed state land surveyor as those terms are |
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24 | 27 | | defined by Section 1071.002, Occupations Code. |
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25 | 28 | | SECTION 2. Sections 130.002(a), (b), (c), (d), and (f), |
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26 | 29 | | Civil Practice and Remedies Code, are amended to read as follows: |
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27 | 30 | | (a) A covenant or promise in, in connection with, or |
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28 | 31 | | collateral to a construction contract is void and unenforceable if |
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29 | 32 | | the covenant or promise provides for a contractor who is to perform |
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30 | 33 | | the work that is the subject of the construction contract to |
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31 | 34 | | indemnify or hold harmless a registered architect, licensed |
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32 | 35 | | engineer, or land surveyor, or an agent, servant, or employee of a |
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33 | 36 | | registered architect, [or] licensed engineer, or land surveyor from |
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34 | 37 | | liability for damage that: |
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35 | 38 | | (1) is caused by or results from: |
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36 | 39 | | (A) defects in plans, designs, or specifications |
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37 | 40 | | prepared, approved, or used by the architect, [or] engineer, or |
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38 | 41 | | land surveyor; or |
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39 | 42 | | (B) negligence of the architect, [or] engineer, |
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40 | 43 | | or land surveyor in the rendition or conduct of professional duties |
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41 | 44 | | called for or arising out of the construction contract and the |
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42 | 45 | | plans, designs, or specifications that are a part of the |
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43 | 46 | | construction contract; and |
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44 | 47 | | (2) arises from: |
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45 | 48 | | (A) personal injury or death; |
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46 | 49 | | (B) property injury; or |
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47 | 50 | | (C) any other expense that arises from personal |
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48 | 51 | | injury, death, or property injury. |
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49 | 52 | | (b) A covenant or promise in, in connection with, or |
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50 | 53 | | collateral to a construction contract other than a contract for a |
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51 | 54 | | single family or multifamily residence is void and unenforceable if |
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52 | 55 | | the covenant or promise provides for a registered architect, [or] |
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53 | 56 | | licensed engineer, or land surveyor whose engineering, [or] |
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54 | 57 | | architectural, or land surveying design services are the subject of |
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55 | 58 | | the construction contract to indemnify or hold harmless an owner or |
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56 | 59 | | owner's agent or employee from liability for damage that is caused |
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57 | 60 | | by or results from the negligence of an owner or an owner's agent or |
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58 | 61 | | employee. |
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59 | 62 | | (c) Except as provided by Subsection (d), (e), or (f), a |
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60 | 63 | | covenant or promise in, in connection with, or collateral to a |
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61 | 64 | | construction contract for engineering, [or] architectural, or land |
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62 | 65 | | surveying services related to an improvement to real property is |
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63 | 66 | | void and unenforceable to the extent the covenant or promise |
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64 | 67 | | provides that a licensed engineer, [or] registered architect, or |
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65 | 68 | | land surveyor must defend a party, including a third party, against |
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66 | 69 | | a claim based wholly or partly on the negligence of, fault of, or |
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67 | 70 | | breach of contract by the owner, the owner's agent, the owner's |
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68 | 71 | | employee, or another entity over which the owner exercises |
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69 | 72 | | control. A covenant or promise in, in connection with, or |
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70 | 73 | | collateral to a contract for engineering, [or] architectural, or |
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71 | 74 | | land surveying services related to an improvement to real property |
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72 | 75 | | may provide for the reimbursement of an owner's reasonable |
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73 | 76 | | attorney's fees in proportion to the engineer's, [or] architect's, |
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74 | 77 | | or land surveyor's liability. |
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75 | 78 | | (d) Notwithstanding Subsection (c), an owner that is a party |
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76 | 79 | | to a contract for engineering, [or] architectural, or land |
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77 | 80 | | surveying services related to an improvement to real property may |
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78 | 81 | | require in the contract that the engineer, [or] architect, or land |
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79 | 82 | | surveyor name the owner as an additional insured under any of the |
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80 | 83 | | engineer's, [or] architect's, or land surveyor's insurance coverage |
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81 | 84 | | to the extent additional insureds are allowed under the policy and |
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82 | 85 | | provide any defense to the owner provided by the policy to a named |
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83 | 86 | | insured. |
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84 | 87 | | (f) Subsection (c) does not apply to a covenant to defend a |
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85 | 88 | | party, including a third party, for a claim of negligent hiring of |
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86 | 89 | | the architect, [or] engineer, or land surveyor. |
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87 | 90 | | SECTION 3. The heading to Section 130.0021, Civil Practice |
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88 | 91 | | and Remedies Code, is amended to read as follows: |
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89 | 92 | | Sec. 130.0021. ARCHITECT'S, [OR] ENGINEER'S, OR LAND |
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90 | 93 | | SURVEYOR'S STANDARD OF CARE. |
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91 | 94 | | SECTION 4. Sections 130.0021(a) and (b), Civil Practice and |
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92 | 95 | | Remedies Code, are amended to read as follows: |
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93 | 96 | | (a) A construction contract for architectural, [or] |
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94 | 97 | | engineering, or land surveying services or a contract related to |
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95 | 98 | | the construction or repair of an improvement to real property that |
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96 | 99 | | contains architectural, [or] engineering, or land surveying |
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97 | 100 | | services as a component part must require that the architectural, |
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98 | 101 | | [or] engineering, or land surveying services be performed with the |
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99 | 102 | | professional skill and care ordinarily provided by competent |
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100 | 103 | | architects, [or] engineers, or land surveyors practicing under the |
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101 | 104 | | same or similar circumstances and professional license. |
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102 | 105 | | (b) If a contract described by Subsection (a) contains a |
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103 | 106 | | provision establishing a different standard of care than the |
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104 | 107 | | standard described by Subsection (a): |
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105 | 108 | | (1) the provision is void and unenforceable; and |
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106 | 109 | | (2) the standard of care described by Subsection (a) |
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107 | 110 | | applies to the performance of the architectural, [or] engineering, |
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108 | 111 | | or land surveying services. |
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109 | 112 | | SECTION 5. Section 130.004(b), Civil Practice and Remedies |
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110 | 113 | | Code, is amended to read as follows: |
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111 | 114 | | (b) Except as provided by Section 130.002(b) or (c) or |
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112 | 115 | | Section 130.0021, this chapter does not prohibit or make void or |
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113 | 116 | | unenforceable a covenant or promise to: |
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114 | 117 | | (1) indemnify or hold harmless an owner of an interest |
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115 | 118 | | in real property and persons employed solely by that owner; or |
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116 | 119 | | (2) allocate, release, liquidate, limit, or exclude |
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117 | 120 | | liability in connection with a construction contract between an |
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118 | 121 | | owner or other person for whom a construction contract is being |
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119 | 122 | | performed and a registered architect, [or] licensed engineer, or |
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120 | 123 | | land surveyor. |
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121 | 124 | | SECTION 6. Section 130.005, Civil Practice and Remedies |
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122 | 125 | | Code, is amended to read as follows: |
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123 | 126 | | Sec. 130.005. APPLICATION OF CHAPTER. This chapter does |
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124 | 127 | | not apply to a contract or agreement in which an architect, [or] |
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125 | 128 | | engineer, or land surveyor, or an agent, servant, or employee of an |
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126 | 129 | | architect, [or] engineer, or land surveyor, is indemnified from |
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127 | 130 | | liability for: |
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128 | 131 | | (1) negligent acts other than those described by this |
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129 | 132 | | chapter; or |
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130 | 133 | | (2) negligent acts of the contractor, any |
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131 | 134 | | subcontractor, any person directly or indirectly employed by the |
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132 | 135 | | contractor or a subcontractor, or any person for whose acts the |
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133 | 136 | | contractor or a subcontractor may be liable. |
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134 | 137 | | SECTION 7. Section 271.904, Local Government Code, is |
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135 | 138 | | amended to read as follows: |
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136 | 139 | | Sec. 271.904. ENGINEERING, [OR] ARCHITECTURAL, OR LAND |
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137 | 140 | | SURVEYING SERVICES CONTRACTS: INDEMNIFICATION LIMITATIONS; DUTIES |
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138 | 141 | | OF ENGINEER, [OR] ARCHITECT, OR LAND SURVEYOR. (a) A covenant or |
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139 | 142 | | promise in, in connection with, or collateral to a contract for |
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140 | 143 | | engineering, [or] architectural, or land surveying services to |
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141 | 144 | | which a governmental agency is a party is void and unenforceable if |
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142 | 145 | | the covenant or promise provides that a licensed engineer, [or] |
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143 | 146 | | registered architect, or land surveyor whose work product is the |
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144 | 147 | | subject of the contract must indemnify or hold harmless the |
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145 | 148 | | governmental agency against liability for damage, other than |
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146 | 149 | | liability for damage to the extent that the damage is caused by or |
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147 | 150 | | results from an act of negligence, intentional tort, intellectual |
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148 | 151 | | property infringement, or failure to pay a subcontractor or |
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149 | 152 | | supplier committed by the indemnitor or the indemnitor's agent, |
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150 | 153 | | consultant under contract, or another entity over which the |
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151 | 154 | | indemnitor exercises control. |
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152 | 155 | | (b) Except as provided by Subsection (c), a covenant or |
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153 | 156 | | promise in, in connection with, or collateral to a contract for |
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154 | 157 | | engineering, [or] architectural, or land surveying services to |
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155 | 158 | | which a governmental agency is a party is void and unenforceable if |
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156 | 159 | | the covenant or promise provides that a licensed engineer, [or] |
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157 | 160 | | registered architect, or land surveyor whose work product is the |
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158 | 161 | | subject of the contract must defend a party, including a third |
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159 | 162 | | party, against a claim based wholly or partly on the negligence of, |
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160 | 163 | | fault of, or breach of contract by the governmental agency, the |
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161 | 164 | | agency's agent, the agency's employee, or other entity, excluding |
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162 | 165 | | the engineer, [or] architect, or land surveyor or that person's |
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163 | 166 | | agent, employee, or subconsultant, over which the governmental |
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164 | 167 | | agency exercises control. A covenant or promise may provide for |
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165 | 168 | | the reimbursement of a governmental agency's reasonable attorney's |
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166 | 169 | | fees in proportion to the engineer's, [or] architect's, or land |
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167 | 170 | | surveyor's liability. |
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168 | 171 | | (c) Notwithstanding Subsection (b), a governmental agency |
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169 | 172 | | may require in a contract for engineering, [or] architectural, or |
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170 | 173 | | land surveying services to which the governmental agency is a party |
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171 | 174 | | that the engineer, [or] architect, or land surveyor name the |
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172 | 175 | | governmental agency as an additional insured under the engineer's, |
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173 | 176 | | [or] architect's, or land surveyor's general liability insurance |
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174 | 177 | | policy and provide any defense provided by the policy. |
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175 | 178 | | (d) A contract for engineering, [or] architectural, or land |
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176 | 179 | | surveying services to which a governmental agency is a party must |
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177 | 180 | | require a licensed engineer, [or] registered architect, or land |
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178 | 181 | | surveyor to perform services: |
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179 | 182 | | (1) with the professional skill and care ordinarily |
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180 | 183 | | provided by competent engineers, [or] architects, or land surveyors |
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181 | 184 | | practicing under the same or similar circumstances and professional |
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182 | 185 | | license; and |
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183 | 186 | | (2) as expeditiously as is prudent considering the |
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184 | 187 | | ordinary professional skill and care of a competent engineer, [or] |
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185 | 188 | | architect, or land surveyor. |
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186 | 189 | | (e) In a contract for engineering, [or] architectural, or |
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187 | 190 | | land surveying services to which a governmental agency is a party, a |
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188 | 191 | | provision establishing a different standard of care than a standard |
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189 | 192 | | described by Subsection (d) is void and unenforceable. If a |
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190 | 193 | | contract contains a void and unenforceable provision, the standard |
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191 | 194 | | of care described by Subsection (d) applies. |
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192 | 195 | | (f) In this section: |
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193 | 196 | | (1) "Governmental[, "governmental] agency" has the |
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194 | 197 | | meaning assigned by Section 271.003. |
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195 | 198 | | (2) "Land surveyor" means a registered professional |
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196 | 199 | | land surveyor or licensed state land surveyor as those terms are |
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197 | 200 | | defined by Section 1071.002, Occupations Code. |
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198 | 201 | | (g) Nothing in this section prohibits a governmental agency |
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199 | 202 | | in a contract for engineering, [or] architectural, or land |
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200 | 203 | | surveying services to which the governmental agency is a party from |
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201 | 204 | | including and enforcing conditions that relate to the scope, fees, |
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202 | 205 | | and schedule of a project in the contract. |
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203 | 206 | | SECTION 8. The change in law made by this Act applies only |
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204 | 207 | | to a contract or covenant or promise in, in connection with, or |
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205 | 208 | | collateral to a construction contract entered into on or after the |
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206 | 209 | | effective date of this Act. A contract or covenant or promise in, |
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207 | 210 | | in connection with, or collateral to a construction contract |
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208 | 211 | | entered into before the effective date of this Act is governed by |
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209 | 212 | | the law applicable to the contract or covenant or promise |
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210 | 213 | | immediately before the effective date of this Act, and that law is |
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211 | 214 | | continued in effect for that purpose. |
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212 | 215 | | SECTION 9. This Act takes effect September 1, 2025. |
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