Rep. Paul Workman
HB 586 by Rep. Paul Workman (R-Austin) is scheduled for House floor debate later today. The bill waives the state’s sovereign immunity for a breach of contract claim for engineering, architectural, or construction services brought by a contractor in a state or county court (not federal court). The state’s liability is limited to: (1) the balance due and owed by the state agency under the contract (including compensation for the increased cost to perform work as a direct result of owner-caused delays or acceleration, if the contract provides for compensation); (2) the amount owed for written change orders or additional work required to carry out the contract; (3) reasonable and necessary attorney’s fees based on an hourly rate, if the contract provides for recovery of attorney’s fees; and (4) interest at the specified contract rate, or if the rate is not specified, at the post judgment interest rate (not to exceed 10%). A contractor may not recover damages for consequential damages, exemplary damages, or damages for unabsorbed home office overhead. HB 586 does not waive sovereign immunity to a tort action. TCJL supports this legislation.
