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Design Intent? Texas Legislative Session Ends: Liability of Contractors for Design Defects


In landmark legislation that seeks to reverse over 100 years of Texas case-law, the 2021 Texas Legislature passed CSSB 219 which relieves construction contractors from having responsibility for defects caused by design professionals.  The Bill states, “A contractor is not responsible for the consequences of design defect in and may not warranty the accuracy, adequacy, sufficiency, or suitability of plans, specifications, or other design documents provided to the contractor…”

The Bill also specifically prohibits the responsibility for the design of a project to be shifted from the design professionals to the contractor by contract.  The Bill does not apply to certain “critical infrastructure facilities” such as dams, electrical and gas facilities and other specifically identified facilities.  The Bill also excludes design-build contracts for which the contractor has assumed responsibility.

While the Bill specifically does not require the contractor to verify the sufficiency of the design drawings, it does not protect the contractor for defective designs of which the contractor has actual knowledge.  If the contractor has actual knowledge of design flaws, the contactor is required to report those flaws to the owner.  If the Bill is signed into law, it would become effective for contracts entered into on or after September 1, 2021.

To determine whether the design or construction contracts you are preparing or negotiating comport with current Texas law, it is best to consult with a construction attorney. The attorneys in our Austin and Dallas offices are available to answer any questions you may have.

 

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