HB386 - Relating to change order limits for certain construction contracts.

  89R3615 CS-F     By: Gervin-Hawkins, Lopez of Cameron, Hefner 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.