Bill Text: TX HB3485 | 2023-2024 | 88th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to a contractor's or subcontractor's right to elect not to proceed with additional work under a contract.
Spectrum: Moderate Partisan Bill (Republican 4-1)
Status: (Passed) 2023-06-10 - Effective on 9/1/23 [HB3485 Detail]
Download: Texas-2023-HB3485-Introduced.html
Bill Title: Relating to a contractor's or subcontractor's right to elect not to proceed with additional work under a contract.
Spectrum: Moderate Partisan Bill (Republican 4-1)
Status: (Passed) 2023-06-10 - Effective on 9/1/23 [HB3485 Detail]
Download: Texas-2023-HB3485-Introduced.html
88R13419 ATP-F | ||
By: Bell of Kaufman | H.B. No. 3485 |
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relating to a contractor's or subcontractor's right to elect not to | ||
proceed with additional work under a contract. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subchapter D, Chapter 2251, Government Code, is | ||
amended by adding Section 2251.0521 to read as follows: | ||
Sec. 2251.0521. UNSIGNED CHANGE ORDER. (a) A contractor or | ||
subcontractor may elect not to proceed with additional work | ||
directed by a governmental entity if: | ||
(1) the contractor or subcontractor has not received a | ||
written, fully executed change order for the governmental | ||
entity-directed additional work; and | ||
(2) the aggregate actual or anticipated value of the | ||
additional work plus any previous governmental entity-directed | ||
additional work for which the contractor or subcontractor has not | ||
received a written, fully executed change order exceeds 10 percent | ||
of the contractor's or subcontractor's original contract amount. | ||
(b) A contractor or subcontractor who elects not to proceed | ||
with additional work as provided by this section is not responsible | ||
for damages associated with the election not to proceed. | ||
SECTION 2. Chapter 28, Property Code, is amended by adding | ||
Section 28.0091 to read as follows: | ||
Sec. 28.0091. UNSIGNED CHANGE ORDER. (a) A contractor or | ||
subcontractor may elect not to proceed with additional work | ||
directed by an owner if: | ||
(1) the contractor or subcontractor has not received a | ||
written, fully executed change order for the owner-directed | ||
additional work; and | ||
(2) the aggregate actual or anticipated value of the | ||
additional work plus any previous owner-directed additional work | ||
for which the contractor or subcontractor has not received a | ||
written, fully executed change order exceeds 10 percent of the | ||
contractor's or subcontractor's original contract amount. | ||
(b) A contractor or subcontractor who elects not to proceed | ||
with additional work as provided by this section is not responsible | ||
for damages associated with the election not to proceed. | ||
SECTION 3. Section 2251.0521, Government Code, and Section | ||
28.0091, Property Code, as added by this Act, apply only to a | ||
contract entered into on or after the effective date of this Act. | ||
SECTION 4. This Act takes effect September 1, 2023. |