77R14538 E
By Sibley S.B. No. 561
Substitute the following for S.B. No. 561:
By Bosse C.S.S.B. No. 561
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to indemnification provisions concerning registered
1-3 architects and licensed engineers in certain construction
1-4 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
2-1 or promise provides for a contractor who is to perform the work
2-2 that is the subject of the construction contract to indemnify or
2-3 hold harmless a registered architect, licensed [registered]
2-4 engineer or an agent, servant, or employee of a registered
2-5 architect or licensed [registered] engineer from liability for
2-6 damage that:
2-7 (1) is caused by or results from:
2-8 (A) defects in plans, designs, or specifications
2-9 prepared, approved, or used by the architect or engineer; or
2-10 (B) negligence of the architect or engineer in
2-11 the rendition or conduct of professional duties called for or
2-12 arising out of the construction contract and the plans, designs, or
2-13 specifications that are a part of the construction contract; and
2-14 (2) arises from:
2-15 (A) personal injury or death;
2-16 (B) property injury; or
2-17 (C) any other expense that arises from personal
2-18 injury, death, or property injury.
2-19 (b) A covenant or promise in, in connection with, or
2-20 collateral to a construction contract other than a contract for a
2-21 single family or multifamily residence is void and unenforceable if
2-22 the covenant or promise provides for a registered architect or
2-23 licensed engineer whose engineering or architectural design
2-24 services are the subject of the construction contract to indemnify
2-25 or hold harmless an owner or owner's agent or employee from
2-26 liability for damage that is caused by or results from the
2-27 negligence of an owner or an owner's agent 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. (a)
3-4 Except as provided by Section 130.002(b), this [This] chapter does
3-5 not apply to an owner of an interest in real property or persons
3-6 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 by
3-20 Subsection (b), a] covenant or promise in, in connection with, or
3-21 collateral to a contract for engineering or architectural services
3-22 to which a governmental agency is a party is void and unenforceable
3-23 if the covenant or promise provides that a licensed [registered]
3-24 engineer or registered architect whose work product is the subject
3-25 of the contract must indemnify or hold harmless the governmental
3-26 agency against liability for damage that[:]
3-27 [(1)] is caused by or results from the negligence of
4-1 the governmental agency or its agent or employee[; and]
4-2 [(2) arises from:]
4-3 [(A) personal injury or death;]
4-4 [(B) property injury; or]
4-5 [(C) any other expense that arises from personal
4-6 injury, death, or property injury].
4-7 (b) [A covenant under which a registered engineer or
4-8 registered architect agrees to indemnify or hold harmless a
4-9 governmental agency or its agent or employees against liability
4-10 arising from the personal injury or death of the architect or
4-11 engineer or the employees of the architect or engineer is
4-12 enforceable.]
4-13 [(c)] In this section, "governmental agency" has the meaning
4-14 assigned by Section 271.003.
4-15 SECTION 6. This Act takes effect September 1, 2001, and
4-16 applies only to a construction contract entered into on or after
4-17 that date. A construction contract entered into before the
4-18 effective date of this Act is governed by the law in effect on the
4-19 date the construction contract was entered into, and the former law
4-20 is continued in effect for that purpose.