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