| 1 | 1 | | 89R3615 CS-F |
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| 2 | 2 | | By: Gervin-Hawkins H.B. No. 386 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to change order limits for certain construction contracts. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Section 271.060, Local Government Code, is |
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| 12 | 12 | | amended by amending Subsections (c) and (d) and adding Subsection |
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| 13 | 13 | | (c-1) to read as follows: |
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| 14 | 14 | | (c) A contract with an original contract price of $5 million |
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| 15 | 15 | | [$1 million] or more may not be increased by more than 25 percent. |
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| 16 | 16 | | If a change order for a contract with an original contract price of |
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| 17 | 17 | | less than $5 million [$1 million] increases the contract amount to |
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| 18 | 18 | | $5 million [$1 million] or more, subsequent change orders may not |
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| 19 | 19 | | increase the revised contract amount by more than 25 percent. |
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| 20 | 20 | | (c-1) A contract with an original contract price of less |
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| 21 | 21 | | than $5 million may not be increased in the aggregate by more than |
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| 22 | 22 | | the greater of: |
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| 23 | 23 | | (1) 50 percent; or |
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| 24 | 24 | | (2) $1 million. |
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| 25 | 25 | | (d) A governing body may grant authority to an official or |
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| 26 | 26 | | employee responsible for purchasing or for administering a contract |
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| 27 | 27 | | to approve a change order that involves an increase or decrease of |
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| 28 | 28 | | $250,000 [$50,000] or less. |
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| 29 | 29 | | SECTION 2. The changes in law made by this Act apply only to |
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| 30 | 30 | | a contract entered into on or after the effective date of this Act. |
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| 31 | 31 | | A contract entered into before the effective date of this Act is |
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| 32 | 32 | | governed by the law in effect on the date the contract was entered |
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| 33 | 33 | | into, and the former law is continued in effect for that purpose. |
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| 34 | 34 | | SECTION 3. This Act takes effect September 1, 2025. |
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