87R17665 AJA-F     By: Krause H.B. No. 2116     Substitute the following for H.B. No. 2116:     By:  Smith C.S.H.B. No. 2116       A BILL TO BE ENTITLED   AN ACT   relating to certain agreements by architects and engineers in or in   connection with certain construction contracts.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  The heading to Chapter 130, Civil Practice and   Remedies Code, is amended to read as follows:   CHAPTER 130. LIABILITY PROVISIONS [INDEMNIFICATION] IN CERTAIN   CONSTRUCTION CONTRACTS          SECTION 2.  Section 130.002, Civil Practice and Remedies   Code, is amended by adding Subsections (c), (d), and (e) to read as   follows:          (c)  Except as provided by Subsection (d) or (e), a covenant   or promise in, in connection with, or collateral to a construction   contract for engineering or architectural services related to an   improvement to real property is void and unenforceable if the   covenant or promise provides that a licensed engineer or registered   architect must defend a party, including a third party, against a   claim based wholly or partly on the negligence of, fault of, or   breach of contract by the owner, the owner's agent, the owner's   employee, or another entity over which the owner exercises control.   A covenant or promise in, in connection with, or collateral to a   contract for engineering or architectural services related to an   improvement to real property may provide for the reimbursement of   an owner's reasonable attorney's fees in proportion to the   engineer's or architect's liability.          (d)  Notwithstanding Subsection (c), an owner that is a party   to a contract for engineering or architectural services related to   an improvement to real property may require in the contract that the   engineer or architect name the owner as an additional insured under   the engineer's or architect's commercial general liability   insurance policy and provide any defense to the owner provided by   the policy to a named insured.          (e)  Subsection (c) does not apply to a contract for   design-build services in which an owner contracts with a single   entity to provide both design and construction services.          SECTION 3.  Chapter 130, Civil Practice and Remedies Code,   is amended by adding Section 130.0021 to read as follows:          Sec. 130.0021.  ARCHITECT'S OR ENGINEER'S STANDARD OF CARE.     (a) A construction contract for architectural or engineering   services or a contract related to the construction or repair of an   improvement to real property that contains architectural or   engineering services as a component part must require that the   architectural or engineering services be performed with the   professional skill and care ordinarily provided by competent   architects or engineers practicing under the same or similar   circumstances and professional license.          (b)  If a contract described by Subsection (a) contains a   provision establishing a different standard of care than the   standard described by Subsection (a):                (1)  the provision is void and unenforceable; and                (2)  the standard of care described by Subsection (a)   applies to the performance of the architectural or engineering   services.          (c)  Section 130.004 does not limit the applicability of this   section.          SECTION 4.  Section 130.004, Civil Practice and Remedies   Code, is amended to read as follows:          Sec. 130.004.  OWNER OF INTEREST IN REAL PROPERTY. (a)   Except as provided by Section 130.002(b) or (c) or Section   130.0021, this chapter does not apply to an owner of an interest in   real property or persons employed solely by that owner.          (b)  Except as provided by Section 130.002(b) or (c) or   Section 130.0021, this chapter does not prohibit or make void or   unenforceable a covenant or promise to:                (1)  indemnify or hold harmless an owner of an interest   in real property and persons employed solely by that owner; or                (2)  allocate, release, liquidate, limit, or exclude   liability in connection with a construction contract between an   owner or other person for whom a construction contract is being   performed and a registered architect or licensed engineer.          SECTION 5.  (a)  Section 130.002(c), Civil Practice and   Remedies Code, as added by this Act, applies only to a covenant or   promise in, in connection with, or collateral to a contract entered   into on or after the effective date of this Act.          (b)  Sections 130.002(d) and 130.0021, Civil Practice and   Remedies Code, as added by this Act, apply only to a contract   entered into on or after the effective date of this Act.          SECTION 6.  This Act takes effect September 1, 2021.