LIMIT ON LIABILITY OF CONSTRUCTION MONITORING AND INSPECTION SERVICES.

(a) In this section:

(1) "Business entity" means an entity registered under Section 1001.405, Occupations Code.

(2) "Complied with the obligations under the contract" means:

(A) performing the monitoring and inspection required by a contract; and

(B) notifying the department, as required by the contract, of any unsafe condition or operation that the person becomes aware of in the normal course of providing the services under the contract.

(3) "Department" means the Texas Department of Transportation.

(4) "Engineer" has the meaning assigned by Section 1001.002, Occupations Code.

(b) This section applies to a business entity, an officer or employee of a business entity, or an engineer that provides services as a consultant or subconsultant of the department to monitor and inspect the progress of work on a transportation construction or maintenance project performed by a private contractor and report to the department regarding the contractor's compliance with the department's requirements for the project.

(c) A person to whom this section applies is not liable to a claimant for personal injury, property damage, or death arising from an act or omission performed in the course and scope of the person's duties with respect to a project if:

(1) the person does not have authority to direct the operations of the contractor or subcontractor to be monitored or inspected and otherwise had no control of any of the following:

(A) the construction, means, methods, techniques, sequences, or procedures of the contractor or subcontractor;

(B) the safety precautions or programs of the contractor or subcontractor; or

(C) any other person who performs the work of the contractor or subcontractor to be monitored or inspected; and

(2) the person performing the monitoring and inspecting substantially complied with the obligations under the contract with the department.

(d) Subsection (c) does not apply to a cause of action for gross negligence or wilful or wanton conduct.