By: Armbrister S.B. No. 341
A BILL TO BE ENTITLED
AN ACT
1-1 relating to indemnification in certain construction contracts.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Sections 130.001, 130.002, and 130.004, Civil
1-4 Practice and Remedies Code, are amended to read as follows:
1-5 Sec. 130.001. DEFINITION. In this chapter "construction
1-6 contract" means a contract or agreement made and entered into by an
1-7 owner, contractor, subcontractor, registered architect, registered
1-8 engineer, or supplier concerning the design, construction,
1-9 alteration, repair, or maintenance of a building, structure,
1-10 appurtenance, road, highway, bridge, dam, levee, or other
1-11 improvement to or on real property, including moving, demolition,
1-12 and excavation connected with the real property.
1-13 Sec. 130.002. COVENANT OR PROMISE VOID AND UNENFORCEABLE.
1-14 (a) A covenant or promise in, in connection with, or collateral to
1-15 a construction contract is void and unenforceable if the covenant
1-16 or promise provides for a contractor who is to perform the work
1-17 that is the subject of the construction contract to indemnify or
1-18 hold harmless a registered architect or<,> registered engineer or
1-19 an agent, servant, or employee of a registered architect or
1-20 registered engineer from liability for damage that:
1-21 (1) is caused by or results from:
1-22 (A) defects in plans, designs, or specifications
1-23 prepared, approved, or used by the architect or engineer; or
1-24 (B) negligence of the architect or engineer in
2-1 the rendition or conduct of professional duties called for or
2-2 arising out of the construction contract and the plans, designs, or
2-3 specifications that are a part of the construction contract; and
2-4 (2) arises from:
2-5 (A) personal injury or death;
2-6 (B) property injury; or
2-7 (C) any other expense that arises from personal
2-8 injury, death, or property injury.
2-9 (b) Except as provided by Subsection (c), a covenant or
2-10 promise in, in connection with, or collateral to a construction
2-11 contract for other than a single or multifamily residence is void
2-12 and unenforceable if the covenant or promise provides that a
2-13 registered architect or registered engineer whose work product is
2-14 the subject of the construction contract must indemnify or hold
2-15 harmless the owner or the owner's agent or employee against
2-16 liability for damage that:
2-17 (1) is caused by or results from the negligence of the
2-18 owner or the owner's agent or employee; and
2-19 (2) arises from:
2-20 (A) personal injury or death;
2-21 (B) property injury; or
2-22 (C) any other expense that arises from personal
2-23 injury, death, or property injury.
2-24 (c) A covenant under which a registered architect or
2-25 registered engineer agrees to indemnify or hold harmless the owner
2-26 or the owner's agent or employee against liability arising from the
2-27 personal injury or death of the architect or engineer or the
3-1 employees of the architect or engineer is enforceable.
3-2 Sec. 130.004. OWNER OF INTEREST IN REAL PROPERTY.
3-3 (a) Except as provided by Section 130.002(b), this <This> chapter
3-4 does not apply to an owner of an interest in real property or
3-5 persons employed solely by that owner.
3-6 (b) Except as provided by Sections 130.002(b) and (c), this
3-7 <This> chapter does not prohibit or make void or unenforceable a
3-8 covenant or promise to:
3-9 (1) indemnify or hold harmless an owner of an interest
3-10 in real property and persons employed solely by that owner; or
3-11 (2) allocate, release, liquidate, limit, or exclude
3-12 liability in connection with a construction contract between an
3-13 owner or other person for whom a construction contract is being
3-14 performed and a registered architect or registered engineer.
3-15 SECTION 2. The heading of Chapter 130, Civil Practice and
3-16 Remedies Code, is amended to read as follows:
3-17 CHAPTER 130. INDEMNIFICATION <OF ARCHITECTS AND ENGINEERS> IN
3-18 CERTAIN CONSTRUCTION CONTRACTS
3-19 SECTION 3. This Act applies only to a construction contract
3-20 entered into on or after the effective date of this Act. A
3-21 construction contract entered into before the effective date of
3-22 this Act is governed by the law as it existed immediately before
3-23 the effective date of this Act, and that law is continued in effect
3-24 for that purpose.
3-25 SECTION 4. The importance of this legislation and the
3-26 crowded condition of the calendars in both houses create an
3-27 emergency and an imperative public necessity that the
4-1 constitutional rule requiring bills to be read on three several
4-2 days in each house be suspended, and this rule is hereby suspended,
4-3 and that this Act take effect and be in force from and after its
4-4 passage, and it is so enacted.