Texas 2023 - 88th Regular

Texas House Bill HB3485 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	H.B. No. 3485
2	2
3	3
4	4	AN ACT
5	5	relating to a contractor's or subcontractor's right to elect not to
6	6	proceed with additional work under a contract.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. Subchapter D, Chapter 2251, Government Code, is
9	9	amended by adding Section 2251.0521 to read as follows:
10	10	Sec. 2251.0521. UNSIGNED CHANGE ORDER. (a) In this
11	11	section:
12	12	(1) "Public work contract" has the meaning assigned by
13	13	Section 2253.001.
14	14	(2) "Subcontract" means a contract between a
15	15	subcontractor and a vendor who is providing services under a public
16	16	work contract.
17	17	(b) A vendor may elect not to proceed with additional work
18	18	directed by a governmental entity under a public work contract if:
19	19	(1) the vendor has not received a written, fully
20	20	executed change order for the governmental entity-directed
21	21	additional work; and
22	22	(2) the aggregate actual or anticipated value of the
23	23	additional work under the vendor's contract terms plus any previous
24	24	governmental entity-directed additional work for which the vendor
25	25	has not received a written, fully executed change order exceeds 10
26	26	percent of the vendor's original public work contract amount.
27	27	(c) A subcontractor may elect not to proceed with additional
28	28	work directed by a vendor under a subcontract if:
29	29	(1) the subcontractor has not received a written,
30	30	fully executed change order for the governmental entity-directed
31	31	additional work from the vendor; and
32	32	(2) the aggregate actual or anticipated value of the
33	33	additional work under the subcontractor's subcontract terms plus
34	34	any previous governmental entity-directed additional work for
35	35	which the subcontractor has not received a written, fully executed
36	36	change order exceeds 10 percent of the subcontractor's subcontract
37	37	amount.
38	38	(d) A vendor or subcontractor who elects not to proceed with
39	39	additional work as provided by this section is not responsible for
40	40	damages associated with the election not to proceed.
41	41	SECTION 2. Chapter 28, Property Code, is amended by adding
42	42	Section 28.0091 to read as follows:
43	43	Sec. 28.0091. UNSIGNED CHANGE ORDER. (a) A contractor or
44	44	subcontractor may elect not to proceed with additional work
45	45	directed by an owner if:
46	46	(1) the contractor or subcontractor has not received a
47	47	written, fully executed change order for the owner-directed
48	48	additional work; and
49	49	(2) the aggregate actual or anticipated value of the
50	50	additional work plus any previous owner-directed additional work
51	51	for which the contractor or subcontractor has not received a
52	52	written, fully executed change order exceeds 10 percent of the
53	53	contractor's or subcontractor's original contract amount.
54	54	(b) A contractor or subcontractor who elects not to proceed
55	55	with additional work as provided by this section is not responsible
56	56	for damages associated with the election not to proceed.
57	57	SECTION 3. Section 2251.0521, Government Code, and Section
58	58	28.0091, Property Code, as added by this Act, apply only to a
59	59	contract entered into on or after the effective date of this Act.
60	60	SECTION 4. This Act takes effect September 1, 2023.
61	61	______________________________ ______________________________
62	62	President of the Senate Speaker of the House
63	63	I certify that H.B. No. 3485 was passed by the House on May 8,
64	64	2023, by the following vote: Yeas 138, Nays 2, 1 present, not
65	65	voting.
66	66	______________________________
67	67	Chief Clerk of the House
68	68	I certify that H.B. No. 3485 was passed by the Senate on May
69	69	19, 2023, by the following vote: Yeas 30, Nays 1.
70	70	______________________________
71	71	Secretary of the Senate
72	72	APPROVED: _____________________
73	73	Date
74	74	_____________________
75	75	Governor