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A BILL TO BE ENTITLED
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AN ACT
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relating to limitations on adjudication awards arising from certain |
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written contracts with state agencies. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 114.002, Civil Practice and Remedies |
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Code, is amended to read as follows: |
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Sec. 114.002. APPLICABILITY. This chapter applies only to |
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a claim for breach of a written contract that is related to real |
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property or improvements to real property and is for engineering, |
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architectural, or construction services or for materials related to |
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engineering, architectural, or construction services, brought by a |
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party to the written contract, in which the amount in controversy is |
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not less than $250,000, excluding penalties, costs, expenses, |
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prejudgment interest, and attorney's fees. |
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SECTION 2. Section 114.004, Civil Practice and Remedies |
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Code, is amended to read as follows: |
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Sec. 114.004. LIMITATIONS ON ADJUDICATION AWARDS. (a) The |
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total amount of money awarded in an adjudication brought against a |
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state agency for breach of an express provision of a contract |
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subject to this chapter is limited to the following: |
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(1) the balance due and owed by the state agency under |
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the contract as it may have been amended, including any amount owed |
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as compensation for the increased cost to perform the work as a |
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direct result of owner-caused delays or acceleration [if the
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contract expressly provides for that compensation]; |
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(2) the amount owed for written change orders; |
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(3) reasonable and necessary attorney's fees that are |
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equitable and just [based on an hourly rate that are equitable and
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just if the contract expressly provides that recovery of attorney's
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fees is available to all parties to the contract]; and |
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(4) interest at the rate specified by the contract or, |
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if a rate is not specified, the rate for postjudgment interest under |
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Section 304.003(c), Finance Code, but not to exceed 10 percent. |
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(b) Damages awarded in an adjudication brought against a |
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state agency arising under a contract subject to this chapter may |
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not include: |
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(1) consequential damages, except as expressly |
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allowed under Subsection (a)(1); |
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(2) exemplary damages; or |
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(3) damages for unabsorbed home office overhead. |
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SECTION 3. Chapter 114 |
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, Civil Practice and Remedies Code, |
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as amended by this Act, applies only to a claim arising under a |
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contract executed on or after the effective date of this Act. A |
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claim that arises under a contract executed before the effective |
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date of this Act is governed by the law as it existed immediately |
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before the effective date of this Act, and that law is continued in |
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effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2019. |