1-1 By: Sibley S.B. No. 561
1-2 (In the Senate - Filed February 6, 2001; February 7, 2001,
1-3 read first time and referred to Committee on Jurisprudence;
1-4 March 6, 2001, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 6, Nays 0; March 6, 2001,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 561 By: Duncan
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to indemnification provisions concerning registered
1-11 architects and licensed engineers in certain construction
1-12 contracts.
1-13 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-14 SECTION 1. The heading to Chapter 130, Civil Practice and
1-15 Remedies Code, is amended to read as follows:
1-16 CHAPTER 130. INDEMNIFICATION [OF ARCHITECTS AND
1-17 ENGINEERS] IN CERTAIN CONSTRUCTION CONTRACTS
1-18 SECTION 2. Section 130.001, Civil Practice and Remedies
1-19 Code, is amended to read as follows:
1-20 Sec. 130.001. DEFINITION. In this chapter "construction
1-21 contract" means a contract or agreement made and entered into by an
1-22 owner, contractor, subcontractor, registered architect, licensed
1-23 engineer, or supplier concerning the design, construction,
1-24 alteration, repair, or maintenance of a building, structure,
1-25 appurtenance, road, highway, bridge, dam, levee, or other
1-26 improvement to or on real property, including moving, demolition,
1-27 and excavation connected with the real property.
1-28 SECTION 3. Section 130.002, Civil Practice and Remedies
1-29 Code, is amended to read as follows:
1-30 Sec. 130.002. COVENANT OR PROMISE VOID AND UNENFORCEABLE.
1-31 (a) A covenant or promise in, in connection with, or collateral to
1-32 a construction contract is void and unenforceable if the covenant
1-33 or promise provides for a contractor who is to perform the work
1-34 that is the subject of the construction contract to indemnify or
1-35 hold harmless a registered architect, licensed [registered]
1-36 engineer or an agent, servant, or employee of a registered
1-37 architect or licensed [registered] engineer from liability for
1-38 damage that:
1-39 (1) is caused by or results from:
1-40 (A) defects in plans, designs, or specifications
1-41 prepared, approved, or used by the architect or engineer; or
1-42 (B) negligence of the architect or engineer in
1-43 the rendition or conduct of professional duties called for or
1-44 arising out of the construction contract and the plans, designs, or
1-45 specifications that are a part of the construction contract; and
1-46 (2) arises from:
1-47 (A) personal injury or death;
1-48 (B) property injury; or
1-49 (C) any other expense that arises from personal
1-50 injury, death, or property injury.
1-51 (b) A covenant or promise in, in connection with, or
1-52 collateral to a construction contract other than a contract for a
1-53 single-family or multifamily residence is void and unenforceable if
1-54 the covenant or promise provides for a registered architect or
1-55 licensed engineer whose work product is the subject of the
1-56 construction contract to indemnify or hold harmless an owner or
1-57 owner's agent or employee from liability for damage that is caused
1-58 by or results from the negligence of an owner or an owner's agent
1-59 or employee.
1-60 SECTION 4. Section 130.004, Civil Practice and Remedies
1-61 Code, is amended to read as follows:
1-62 Sec. 130.004. OWNER OF INTEREST IN REAL PROPERTY.
1-63 (a) Except as provided by Section 130.002(b), this [This] chapter
1-64 does not apply to an owner of an interest in real property or
2-1 persons employed solely by that owner.
2-2 (b) Except as provided by Section 130.002(b), this [This]
2-3 chapter does not prohibit or make void or unenforceable a covenant
2-4 or promise to:
2-5 (1) indemnify or hold harmless an owner of an interest
2-6 in real property and persons employed solely by that owner; or
2-7 (2) allocate, release, liquidate, limit, or exclude
2-8 liability in connection with a construction contract between an
2-9 owner or other person for whom a construction contract is being
2-10 performed and a registered architect or licensed [registered]
2-11 engineer.
2-12 SECTION 5. Section 271.904, Local Government Code, is
2-13 amended to read as follows:
2-14 Sec. 271.904. INDEMNIFICATION. (a) A [Except as provided
2-15 by Subsection (b), a] covenant or promise in, in connection with,
2-16 or collateral to a contract for engineering or architectural
2-17 services to which a governmental agency is a party is void and
2-18 unenforceable if the covenant or promise provides that a licensed
2-19 [registered] engineer or registered architect whose work product is
2-20 the subject of the contract must indemnify or hold harmless the
2-21 governmental agency against liability for damage that[:]
2-22 [(1)] is caused by or results from the negligence of
2-23 the governmental agency or its agent or employee[; and]
2-24 [(2) arises from:]
2-25 [(A) personal injury or death;]
2-26 [(B) property injury; or]
2-27 [(C) any other expense that arises from personal
2-28 injury, death, or property injury].
2-29 (b) [A covenant under which a registered engineer or
2-30 registered architect agrees to indemnify or hold harmless a
2-31 governmental agency or its agent or employees against liability
2-32 arising from the personal injury or death of the architect or
2-33 engineer or the employees of the architect or engineer is
2-34 enforceable.]
2-35 [(c)] In this section, "governmental agency" has the meaning
2-36 assigned by Section 271.003.
2-37 SECTION 6. This Act takes effect September 1, 2001, and
2-38 applies only to a construction contract entered into on or after
2-39 that date. A construction contract entered into before the
2-40 effective date of this Act is governed by the law in effect on the
2-41 date the construction contract was entered into, and the former law
2-42 is continued in effect for that purpose.
2-43 * * * * *