By Armbrister S.B. No. 341
74R3196 DLF-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to indemnification in certain construction contracts.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Sections 130.001, 130.002, and 130.004, Civil
1-5 Practice and Remedies Code, are amended to read as follows:
1-6 Sec. 130.001. DEFINITION. In this chapter "construction
1-7 contract" means a contract or agreement made and entered into by an
1-8 owner, contractor, subcontractor, registered architect, registered
1-9 engineer, or supplier concerning the design, construction,
1-10 alteration, repair, or maintenance of a building, structure,
1-11 appurtenance, road, highway, bridge, dam, levee, or other
1-12 improvement to or on real property, including moving, demolition,
1-13 and excavation connected with the real property.
1-14 Sec. 130.002. COVENANT OR PROMISE VOID AND UNENFORCEABLE.
1-15 (a) A covenant or promise in, in connection with, or collateral to
1-16 a construction contract is void and unenforceable if the covenant
1-17 or promise provides for a contractor who is to perform the work
1-18 that is the subject of the construction contract to indemnify or
1-19 hold harmless a registered architect or<,> registered engineer or
1-20 an agent, servant, or employee of a registered architect or
1-21 registered engineer from liability for damage that:
1-22 (1) is caused by or results from:
1-23 (A) defects in plans, designs, or specifications
1-24 prepared, approved, or used by the architect or engineer; or
2-1 (B) negligence of the architect or engineer in
2-2 the rendition or conduct of professional duties called for or
2-3 arising out of the construction contract and the plans, designs, or
2-4 specifications that are a part of the construction contract; and
2-5 (2) arises from:
2-6 (A) personal injury or death;
2-7 (B) property injury; or
2-8 (C) any other expense that arises from personal
2-9 injury, death, or property injury.
2-10 (b) A covenant or promise in, in connection with, or
2-11 collateral to a construction contract is void and unenforceable if
2-12 the covenant or promise provides that a registered architect or
2-13 registered engineer whose work product is the subject of the
2-14 construction contract must indemnify or hold harmless the owner or
2-15 the owner's agent or employee against liability for damage that:
2-16 (1) is caused by or results from the negligence of the
2-17 owner or the owner's agent or employee; and
2-18 (2) arises from:
2-19 (A) personal injury or death;
2-20 (B) property injury; or
2-21 (C) any other expense that arises from personal
2-22 injury, death, or property injury.
2-23 Sec. 130.004. OWNER OF INTEREST IN REAL PROPERTY.
2-24 (a) Except as provided by Section 130.002(b), this <This> chapter
2-25 does not apply to an owner of an interest in real property or
2-26 persons employed solely by that owner.
2-27 (b) Except as provided by Section 130.002(b), this <This>
3-1 chapter does not prohibit or make void or unenforceable a covenant
3-2 or promise to:
3-3 (1) indemnify or hold harmless an owner of an interest
3-4 in real property and persons employed solely by that owner; or
3-5 (2) allocate, release, liquidate, limit, or exclude
3-6 liability in connection with a construction contract between an
3-7 owner or other person for whom a construction contract is being
3-8 performed and a registered architect or registered engineer.
3-9 SECTION 2. The heading of Chapter 130, Civil Practice and
3-10 Remedies Code, is amended to read as follows:
3-11 CHAPTER 130. INDEMNIFICATION <OF ARCHITECTS AND ENGINEERS> IN
3-12 CERTAIN CONSTRUCTION CONTRACTS
3-13 SECTION 3. This Act applies only to a construction contract
3-14 entered into on or after the effective date of this Act. A
3-15 construction contract entered into before the effective date of
3-16 this Act is governed by the law as it existed immediately before
3-17 the effective date of this Act, and that law is continued in effect
3-18 for that purpose.
3-19 SECTION 4. The importance of this legislation and the
3-20 crowded condition of the calendars in both houses create an
3-21 emergency and an imperative public necessity that the
3-22 constitutional rule requiring bills to be read on three several
3-23 days in each house be suspended, and this rule is hereby suspended,
3-24 and that this Act take effect and be in force from and after its
3-25 passage, and it is so enacted.