Bill Text: TX HB2901 | 2019-2020 | 86th Legislature | Comm Sub


Bill Title: Relating to civil liability and responsibility for the consequences of defects in the plans, specifications, or related documents for the construction or repair of an improvement to real property.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2019-04-26 - Committee report sent to Calendars [HB2901 Detail]

Download: Texas-2019-HB2901-Comm_Sub.html
  86R25530 AJA-F
 
  By: Leach H.B. No. 2901
 
  Substitute the following for H.B. No. 2901:
 
  By:  White C.S.H.B. No. 2901
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to civil liability and responsibility for the consequences
  of defects in the plans, specifications, or related documents for
  the construction or repair of an improvement to real property.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Title 4, Business & Commerce Code, is amended by
  adding Chapter 59 to read as follows:
  CHAPTER 59. RESPONSIBILITY FOR DEFECTS IN PLANS AND SPECIFICATIONS
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 59.001.  DEFINITIONS. In this chapter:
               (1)  "Construction" includes:
                     (A)  the initial construction of an improvement to
  real property;
                     (B)  the construction of an addition to an
  improvement to real property; or
                     (C)  the repair, alteration, or remodeling of an
  improvement to real property.
               (2)  "Contractor" means a person engaged in the
  business of developing, constructing, fabricating, repairing,
  altering, or remodeling improvements to real property.
               (3)  "Critical infrastructure facility" has the
  meaning assigned by Section 423.0045, Government Code.
               (4)  "Subcontractor" means a contractor directly
  retained and compensated by another contractor to perform labor or
  perform labor and supply materials in the construction.
  SUBCHAPTER B. CONTRACTOR RESPONSIBILITY
         Sec. 59.051.  APPLICABILITY OF SUBCHAPTER. (a) This
  subchapter applies only to a contract for the construction or
  repair of an improvement to real property.
         (b)  This subchapter does not apply to a contract entered
  into by a person for the construction or repair of a critical
  infrastructure facility owned or operated by the person or any
  building, structure, improvement, appurtenance, or other facility
  owned by the person that is necessary to the business operations
  associated with the critical infrastructure facility. For purposes
  of this subsection, "person" includes a parent, subsidiary,
  affiliated entity, joint venture partner, or owner of the person.
         Sec. 59.052.  LIMITATION ON CONTRACTOR'S LIABILITY AND
  RESPONSIBILITY FOR CERTAIN DEFECTS. (a) A contractor is not
  responsible for the consequences of defects in and may not warranty
  the accuracy, adequacy, sufficiency, or suitability of plans,
  specifications, or other design or bid documents provided to the
  contractor by: 
               (1)  the person with whom the contractor entered into
  the contract; or
               (2)  another person on behalf of the person with whom
  the contractor entered into the contract.
         (b)  A contractor must disclose in writing to the person with
  whom the contractor enters into a contract the existence of any
  known defect in the plans, specifications, or other design or bid
  documents discovered by the contractor before or during
  construction.
         (c)  A contractor who fails to disclose a condition as
  required by Subsection (b) may be liable for defects that result
  from the failure to disclose.
         Sec. 59.053.  WAIVER OF SUBCHAPTER ON PUBLIC PROJECT. This
  subchapter may not be waived by a contractor, subcontractor, or
  owner on a public contract.
         Sec. 59.054.  WAIVER OF SUBCHAPTER ON PRIVATE PROJECT. (a)
  Except as provided by Subsection (b), this subchapter may not be
  waived on a private contract.
         (b)  This subchapter may be waived only by written agreement.
  To be enforceable, the written agreement must:
               (1)  clearly and prominently state that the parties
  agree to waive specifically this subchapter in its entirety;
               (2)  identify the specific plans, specifications, or
  other design or bid documents to which the waiver applies; and
               (3)  be signed by the contractor on a date that is not
  earlier than the date the contractor receives the plans,
  specifications, or other design or bid documents to which the
  waiver applies.
         (c)  A purported waiver of this subchapter in violation of
  this section is void.
         SECTION 2.  Subchapter A, Chapter 2254, Government Code, is
  amended by adding Section 2254.0041 to read as follows:
         Sec. 2254.0041.  ARCHITECT'S OR ENGINEER'S STANDARD OF CARE.
  (a) A governmental entity may not require in a contract for
  engineering or architectural services related to the construction
  or repair of an improvement to real property, or in a contract
  related to the construction or repair of an improvement to real
  property that contains engineering or architectural services as a
  component part, that the engineering or architectural services be
  performed to a level of professional skill and care beyond that
  which would be provided by an ordinarily prudent engineer or
  architect with the same professional license under the same or
  similar circumstances.
         (b)  Nothing in this section prevents a party to a contract
  for engineering or architectural services from enforcing specific
  obligations in the contract that are separate from the standard of
  care.
         SECTION 3.  (a)  The changes in law made by this Act apply
  only to a contract entered into on or after the effective date of
  this Act. A contract entered into before the effective date of this
  Act is governed by the law in effect when the contract was entered
  into, and the former law is continued in effect for that purpose.
         (b)  An original contract for the construction or repair of
  an improvement to real property with the owner of an interest in
  real property that is entered into before the effective date of this
  Act, and a subcontract or purchase order for providing labor or
  materials associated with that original contract, whether the
  subcontract or purchase order is entered into before, on, or after
  the effective date of this Act, is governed by the law in effect
  when the original contract was entered into, and the former law is
  continued in effect for that purpose.
         SECTION 4.  This Act takes effect September 1, 2019.
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