Bill > HB5201

This bill requires school districts to take several protective measures when hiring project managers for construction projects exceeding $1,000,000. Specifically, school districts must now ensure that project managers are bonded for at least 10% of the total contract value, which provides financial protection against potential project failures or mismanagement. Additionally, districts must verify that project managers are licensed by the Texas Board of Professional Engineers and Land Surveyors and have professional liability insurance or errors and omissions coverage. The bill allows for claims against these bonds if a project manager fails to perform duties as contracted, including missing deadlines, experiencing budget overruns, or not paying subcontractors and suppliers. The bond must be issued by a surety company authorized to do business in Texas and is designed to ensure the faithful performance of the project manager's duties and compliance with applicable laws. These new requirements aim to increase accountability and reduce financial risks for school districts undertaking large construction projects. The bill will take effect on September 1, 2025, giving school districts time to adjust their contracting practices to comply with the new regulations.

Education

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB5201