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HB 3069 (Holland/Hughes), which shortens the Statute of Repose for both design professionals and contractors on public works projects, was signed into law by Governor Abbott becoming effective on June 14, 2021.
A governmental entity, such as school districts, must bring suit for damages against:
- a design professional in an action arising out of a defective or unsafe condition of the real property, the improvement, or the equipment not later than eight (8) years after the substantial completion of the improvement or the beginning of operation of the equipment, and
- a contractor in an action arising out of a defective or unsafe condition of the real property or a deficiency in the construction or repair of the improvement not later than eight (8) years after substantial completion of the improvement.
If the governmental entity presents a written claim to the design professional or contractor within the 8 year limitations period, the period is then extended for one (1) year from the date the claim is presented.
This new law does not apply to:
- Contracts with the Texas Department of Transportation,
- Contracts that receive funding from the state highway fund or a federal fund designated for highway or mass transit spending, and
- Civil works projects as defined under Section 2269.351 of the Texas Government Code (Subchapter for Design-Build for Certain Civil Works Projects).
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