HOUSTON, TX — Andrews Myers, led by firm Shareholder Ben Westcott, partnered with Associated Builders and Contractors (ABC) of Texas, and the ABC Greater Houston Chapter, in crafting two construction-related bills (House Bills 345 and 346) that were recently signed into law by Governor Rick Perry. These two bills, designed to help contractors collect monies owed in a much quicker manner, are outlined below along with six other construction bills that passed through the 82nd Legislative Session. Unless otherwise noted, the new laws will take effect September 1, 2011:
2011 Legislation Affecting the Construction Industry
- House Bill 2093 (Indemnity): Bans broad form indemnity clauses and the requirement for blanket additional insured endorsements in construction contracts. Creates exclusion for employees’ personal injury claims and for OCIPs and CCIPs. CIPs must provide completed operations coverage for at least three years. (Effective January 1, 2012)
- HB 1456/SB 1332 (Lien Waiver): Creates one set of statutory lien waiver forms, both conditional and unconditional, to be used during the payment process on construction projects in Texas. (Effective January 1, 2012)
- HB 1390/SB 590 (Retainage Lien): Moves retainage notice requirements to the end of the Project. Claimants can now send notice of a retainage claim within 30 days of completion of their work; liens must then be filed by the 15th day of the fourth month.
- HB 345/SB 1382 (Interest Against Government): Allows contractors, subcontractors and suppliers to collect interest from government owners on past due contract balances.
- HB 346/SB 539 (Attorneys’ Fees on Liens): Makes collection of attorneys’ fees mandatory on suits to foreclose lien claims (except against residential)
- HB 628 (Alternative Delivery Systems): Allows for CSP, JOC, CMA, CMAR and DB procurement methods in addition to strict competitive bidding, allows awards based on “best value” including any legal criteria listed in the RFP, and consolidates the rules applicable to procurement for most public construction contracts.
- SB 1048 (Public/Private Partnerships): Provides a road map for private financing of public construction projects; allows for unsolicited proposals and requires payment and performance bonds.
- SB 425 (Certificates of Insurance): Defines limitations for certificates of insurance, like a certificate of insurance is not an insurance policy, and a certificate cannot alter a policy; and agents/brokers cannot be required to issue modified certificates that deviate from state approved forms. (Effective January 1, 2012)
For the complete text of any bill, please visit http://www.capitol.state.tx.us.