Texas House Bill HB2809

Texas 2011 - 82nd Regular

• Out of House Committee: 4/8/11
• Introduced: 3/9/11
• Voted on by House: 4/27/11
• Refer: 3/16/11
• Out of Senate Committee: 5/19/11
• Voted on by Senate: 5/20/11
• Engrossed: 4/27/11
• Governor Action: 6/17/11
• Refer: 4/29/11
• Report Pass: 5/19/11
• Enrolled: 5/23/11
• Passed: 6/17/11

Caption

Relating to the authority of the board of the Greater Texoma Utility Authority to approve changes in a construction contract.

Impact

The impact of HB2809 on state law is primarily seen in its limitation on how much a construction contract's total cost can increase due to change orders. The bill stipulates that the total cost of these change orders cannot exceed 25 percent of the original contract price. This regulation could potentially protect the budgets allocated for such projects while still allowing some degree of adaptability to changing project requirements.

Summary

House Bill 2809 seeks to amend the authority of the board of the Greater Texoma Utility Authority concerning construction contracts. The bill specifically allows the board to approve change orders that either increase or decrease the amount of materials, equipment, or supplies needed after the performance of a construction contract has commenced. This provision aims to provide flexibility in managing contracts, particularly in scenarios where unforeseen circumstances necessitate modifications.

Contention

There may be points of contention related to the bill's stipulation of a 25 percent cap on the increase of contract costs. Stakeholders may debate whether this is sufficient flexibility for construction projects, especially in cases where costs may escalate due to market fluctuations or unexpected project challenges. Furthermore, the bill only applies to contracts entered into or renewed after the effective date, leaving existing contracts under the previous regulatory framework, which may create inconsistencies in how contracts are managed across different timelines.