Bill Text: TX HB2854 | 2023-2024 | 88th Legislature | Introduced


Bill Title: Relating to change order limits for construction contracts.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2023-03-14 - Referred to County Affairs [HB2854 Detail]

Download: Texas-2023-HB2854-Introduced.html
  88R10834 KBB-F
 
  By: Gervin-Hawkins H.B. No. 2854
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to change order limits for 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, 2023.
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