Lopez Project Manager Bill Adds Licenses And Insurance To Bonding

The text as introduced · 475 words

By: Lopez of Cameron
H.B. No. 5201

A BILL TO BE ENTITLED

AN ACT

relating to requiring school districts ensure that project managers

overseeing construction projects are bonded.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 44.031, of the Education Code is amended

to add Subsection (n), (o), and (p) to read as follows:

(n) Before entering into a contract with a project manager

to oversee the construction of a building or other facility, the

school district shall require that the project manager be bonded,

as specified in Chapter 2252, Government Code. The bonding

requirement shall apply to all school district construction

projects exceeding $1,000,000.

(o) Before entering into a contract with a project manager

to oversee the construction of a building or other facility, the

school district is required to verify the project manager is

licensed or registered with the Texas Board of Professional

Engineers and Land Surveyors under Chapter 1001 of the Occupations

Code.

(p) Before entering into a contract with a project manager

to oversee the construction of a building or other facility, the

school district shall require that the project manager provide

evidence of professional liability insurance or errors and

omissions coverage, as described in Section 2269.208, Government

Code. The insurance requirement shall apply to all school district

construction projects exceeding $1,000,000.

SECTION 2. Section 2253.021 of the Government Code is

amended to add a new subsection (i) to read as follows:

(i) A school district that enters into a contract with a

project manager for the oversight of a construction project shall

require the project manager to provide a performance bond as

outlined in this section. The bond must be for an amount equal to at

least 10% of the total contract value. The bond must ensure the

faithful performance of the project manager's duties, compliance

with applicable laws, and payment to subcontractors and suppliers

as required by law.

SECTION 3: Chapter 2201 of the Insurance Code is amended to

add Subchapter F to read as follows:

SUBCHAPTER F. BONDING REQUIREMENTS FOR SCHOOL DISTRICT PROJECT

MANAGERS.

Sec. 2201.501 BONDING REQUIREMENT FOR SCHOOL DISTRICT

CONSTRUCTION PROJECT MANAGERS. (a) A project manager for a school

district construction project, as defined by Section 44.031(g) of

Education Code, must be bonded in accordance with Chapter 2253 of

the Government Code.

(b) The bond must be issued by a surety company authorized

to conduct business in the State of Texas and in an amount not less

than 10% of the total contract value of the construction project.

Sec. 2201.502. CLAIMS AGAINST BONDS. (a) A claim against

the bond may be made if the project manager fails to perform duties

in accordance with the contract, including but limited to failure

to meet deadlines, budget overruns, or nonpayment to

subcontractors or suppliers.

SECTION 4. This Act takes effect September 1, 2025.