88R13419 ATP-F
By: Bell of Kaufman H.B. No. 3485
A BILL TO BE ENTITLED
AN ACT
relating to a contractor's or subcontractor's right to elect not to
proceed with additional work under a contract.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter D, Chapter 2251, Government Code, is
amended by adding Section 2251.0521 to read as follows:
Sec. 2251.0521. UNSIGNED CHANGE ORDER. (a) A contractor or
subcontractor may elect not to proceed with additional work
directed by a governmental entity if:
(1) the contractor or subcontractor has not received a
written, fully executed change order for the governmental
entity-directed additional work; and
(2) the aggregate actual or anticipated value of the
additional work plus any previous governmental entity-directed
additional work for which the contractor or subcontractor has not
received a written, fully executed change order exceeds 10 percent
of the contractor's or subcontractor's original contract amount.
(b) A contractor or subcontractor who elects not to proceed
with additional work as provided by this section is not responsible
for damages associated with the election not to proceed.
SECTION 2. Chapter 28, Property Code, is amended by adding
Section 28.0091 to read as follows:
Sec. 28.0091. UNSIGNED CHANGE ORDER. (a) A contractor or
subcontractor may elect not to proceed with additional work
directed by an owner if:
(1) the contractor or subcontractor has not received a
written, fully executed change order for the owner-directed
additional work; and
(2) the aggregate actual or anticipated value of the
additional work plus any previous owner-directed additional work
for which the contractor or subcontractor has not received a
written, fully executed change order exceeds 10 percent of the
contractor's or subcontractor's original contract amount.
(b) A contractor or subcontractor who elects not to proceed
with additional work as provided by this section is not responsible
for damages associated with the election not to proceed.
SECTION 3. Section 2251.0521, Government Code, and Section
28.0091, Property Code, as added by this Act, apply only to a
contract entered into on or after the effective date of this Act.
SECTION 4. This Act takes effect September 1, 2023.