By: Sibley S.B. No. 561
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to indemnification provisions concerning contractors,
1-3 registered architects, and licensed engineers in certain
1-4 construction contracts.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. The heading to Chapter 130, Civil Practice and
1-7 Remedies Code, is amended to read as follows:
1-8 CHAPTER 130. INDEMNIFICATION [OF ARCHITECTS AND
1-9 ENGINEERS] IN CERTAIN CONSTRUCTION CONTRACTS
1-10 SECTION 2. Section 130.001, Civil Practice and Remedies
1-11 Code, is amended to read as follows:
1-12 Sec. 130.001. DEFINITION. In this chapter "construction
1-13 contract" means a contract or agreement made and entered into by an
1-14 owner, contractor, subcontractor, registered architect, licensed
1-15 engineer, or supplier concerning the design, construction,
1-16 alteration, repair, or maintenance of a building, structure,
1-17 appurtenance, road, highway, bridge, dam, levee, or other
1-18 improvement to or on real property, including moving, demolition,
1-19 and excavation connected with the real property.
1-20 SECTION 3. Section 130.002, Civil Practice and Remedies
1-21 Code, is amended to read as follows:
1-22 Sec. 130.002. COVENANT OR PROMISE VOID AND UNENFORCEABLE.
1-23 (a) A covenant or promise in, in connection with, or collateral to
1-24 a construction contract is void and unenforceable if the covenant
1-25 or promise provides for a contractor who is to perform the work
2-1 that is the subject of the construction contract to indemnify or
2-2 hold harmless a registered architect, licensed [registered]
2-3 engineer or an agent, servant, or employee of a registered
2-4 architect or licensed [registered] engineer from liability for
2-5 damage that:
2-6 (1) is caused by or results from:
2-7 (A) defects in plans, designs, or specifications
2-8 prepared, approved, or used by the architect or engineer; or
2-9 (B) negligence of the architect or engineer in
2-10 the rendition or conduct of professional duties called for or
2-11 arising out of the construction contract and the plans, designs, or
2-12 specifications that are a part of the construction contract; and
2-13 (2) arises from:
2-14 (A) personal injury or death;
2-15 (B) property injury; or
2-16 (C) any other expense that arises from personal
2-17 injury, death, or property injury.
2-18 (b) A covenant or promise in, in connection with, or
2-19 collateral to a construction contract other than a contract for a
2-20 single-family or multifamily residence is void and unenforceable if
2-21 the covenant or promise provides for a registered architect or
2-22 licensed engineer whose work product is the subject of the
2-23 construction contract to indemnify or hold harmless an owner or
2-24 owner's agent or employee from liability for damage that is caused
2-25 by or results from the negligence of an owner or an owner's agent
2-26 or employee.
3-1 SECTION 4. Section 130.004, Civil Practice and Remedies
3-2 Code, is amended to read as follows:
3-3 Sec. 130.004. OWNER OF INTEREST IN REAL PROPERTY.
3-4 (a) Except as provided by Section 130.002(b), this [This] chapter
3-5 does not apply to an owner of an interest in real property or
3-6 persons employed solely by that owner.
3-7 (b) Except as provided by Section 130.002(b), this [This]
3-8 chapter does not prohibit or make void or unenforceable a covenant
3-9 or promise to:
3-10 (1) indemnify or hold harmless an owner of an interest
3-11 in real property and persons employed solely by that owner; or
3-12 (2) allocate, release, liquidate, limit, or exclude
3-13 liability in connection with a construction contract between an
3-14 owner or other person for whom a construction contract is being
3-15 performed and a registered architect or licensed [registered]
3-16 engineer.
3-17 SECTION 5. Section 271.904, Local Government Code, is
3-18 amended to read as follows:
3-19 Sec. 271.904. INDEMNIFICATION. (a) A [Except as provided
3-20 by Subsection (b), a] covenant or promise in, in connection with,
3-21 or collateral to a contract for construction, engineering, or
3-22 architectural services to which a governmental agency is a party is
3-23 void and unenforceable if the covenant or promise provides that a
3-24 contractor, licensed [registered] engineer, or registered architect
3-25 whose work product is the subject of the contract must indemnify or
3-26 hold harmless the governmental agency against liability for damage
4-1 that[:]
4-2 [(1)] is caused by or results from the negligence of
4-3 the governmental agency or its agent or employee[; and]
4-4 [(2) arises from:]
4-5 [(A) personal injury or death;]
4-6 [(B) property injury; or]
4-7 [(C) any other expense that arises from personal
4-8 injury, death, or property injury].
4-9 (b) [A covenant under which a registered engineer or
4-10 registered architect agrees to indemnify or hold harmless a
4-11 governmental agency or its agent or employees against liability
4-12 arising from the personal injury or death of the architect or
4-13 engineer or the employees of the architect or engineer is
4-14 enforceable.]
4-15 [(c)] In this section, "governmental agency" has the meaning
4-16 assigned by Section 271.003.
4-17 SECTION 6. This Act takes effect September 1, 2001, and
4-18 applies only to a construction contract entered into on or after
4-19 that date. A construction contract entered into before the
4-20 effective date of this Act is governed by the law in effect on the
4-21 date the construction contract was entered into, and the former law
4-22 is continued in effect for that purpose.