BILL ANALYSIS

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

The Texas Department of Transportation (TxDOT) contracts with professional firms to oversee roadway, bridge, and other transportation facility construction projects. While TxDOT can perform this function independently, it often hires firms to oversee the general contractors working on the project. The services provided by these firms are known as construction engineering and inspection services (CEI). CEI firms monitor the work of contractors during construction and report findings related to compliance with plans, specifications, and contract provisions to TxDOT.

Despite their supervisory role, CEI firms have no control over the design engineer, the contractors' means or construction methods, or traffic management and maintenance. CEI firms solely provide observation and reporting services on behalf of TxDOT and are not project managers. Still, CEI firms face lawsuits that involve matters out of the control and purview of CEI services.

S.B. 2179 would provide liability protections for firms that perform CEI services on behalf of TxDOT.

As proposed, S.B. 2179 amends current law relating to liability of professional entities performing construction monitoring and inspection services for the Texas Department of Transportation.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 97, Civil Practice and Remedies Code, by adding Section 97.003, as follows:

Sec. 97.003. LIMIT ON LIABILITY OF CONSTRUCTION MONITORING AND INSPECTION SERVICES. Provides that a professional entity or an officer or employee of a professional entity that provides services as a consultant or subconsultant of the Texas Department of Transportation (TxDOT) to monitor and inspect the progress of work on a transportation construction or maintenance project performed by a private contractor and report to TxDOT regarding the contractor's compliance with TxDOT's requirements for the project is not liable to a claimant for personal injury, property damage, or death arising from an action performed in the course and scope of the entity's consulting duties with respect to the project.

SECTION 2. Makes application of this Act prospective.

SECTION 3. Effective date: September 1, 2023.