Bill Caption

Relating to indemnification and duties of engineers and architects under certain governmental contracts.

Fiscal Notes

No significant fiscal impact to the State or local governments is expected.

Bill Analysis

This bill is substantively the same as when we reported on it in its original chamber, although there are changes they do not alter the bill overall. We continue to support this legislation. 

HB 2049 seeks to amend the Local Government Code to prohibit an indemnification covenant or promise in a contract for engineering or architectural services to which a governmental agency is a party from providing for a duty to defend but authorizes the covenant or promise to provide that the governmental agency may seek the reimbursement of reasonable attorney's fees after a final adjudication of liability due to damage that is caused by or results from an act of: negligence, intentional tort, intellectual property infringement, or failure to pay a subcontractor or supplier committed by the indemnitor or the indemnitor's agent, consultant under contract, or another entity over which the indemnitor exercises control.

Under HB 2049, a contract for engineering or architectural services to which a governmental agency is a party must require a licensed engineer or registered architect to perform services. A contract establishing a different standard of care void and unenforceable.

Sen. Eltife is the Senate sponsor on this bill. 

Vote Recommendation Notes

HB 2049 would narrow the scope of government control and responsibility in engineering and architectural service contracts. This change would make it to where a contractor cannot be forced to defend the government in these cases, but can be forced to repay reasonable attorney fees if fault is found. HB 2049 supports limited government in that it adjusts the liability in cases stated in the analysis to distribute wrongdoing by contractors in a more just manner.