HB 5201

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