Texas HB5201 mandates bonding for project managers overseeing school district construction projects exceeding $1 million.

HB5201 requires school districts to ensure project managers for construction projects over $1 million are bonded. The bond must be issued by a Texas-authorized surety company and be at least 10% of the total contract value. The bill also mandates that school districts verify project managers are licensed or registered with the Texas Board of Professional Engineers and Land Surveyors and have professional liability insurance or errors and omissions coverage. This Act takes effect September 1, 2025.

Texas HB5201 mandates bonding for project managers overseeing school district construction projects exceeding $1 million.

HB5201 requires school districts to ensure project managers for construction projects over $1 million are bonded. The bond must be issued by a Texas-authorized surety company and be at least 10% of the total contract value. The bill also mandates that school districts verify project managers are licensed or registered with the Texas Board of Professional Engineers and Land Surveyors and have professional liability insurance or errors and omissions coverage. This Act takes effect September 1, 2025.