Bill Text: TX HB3485 | 2023-2024 | 88th Legislature | Comm Sub
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-Comm_Sub.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-Comm_Sub.html
By: Bell of Kaufman, et al. | H.B. No. 3485 | |
(Senate Sponsor - Johnson) | ||
(In the Senate - Received from the House May 9, 2023; | ||
May 10, 2023, read first time and referred to Committee on Business & | ||
Commerce; May 17, 2023, reported favorably by the following vote: | ||
Yeas 9, Nays 0; May 17, 2023, sent to printer.) | ||
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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) In this | ||
section: | ||
(1) "Public work contract" has the meaning assigned by | ||
Section 2253.001. | ||
(2) "Subcontract" means a contract between a | ||
subcontractor and a vendor who is providing services under a public | ||
work contract. | ||
(b) A vendor may elect not to proceed with additional work | ||
directed by a governmental entity under a public work contract if: | ||
(1) the vendor 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 under the vendor's contract terms plus any previous | ||
governmental entity-directed additional work for which the vendor | ||
has not received a written, fully executed change order exceeds 10 | ||
percent of the vendor's original public work contract amount. | ||
(c) A subcontractor may elect not to proceed with additional | ||
work directed by a vendor under a subcontract if: | ||
(1) the subcontractor has not received a written, | ||
fully executed change order for the governmental entity-directed | ||
additional work from the vendor; and | ||
(2) the aggregate actual or anticipated value of the | ||
additional work under the subcontractor's subcontract terms plus | ||
any previous governmental entity-directed additional work for | ||
which the subcontractor has not received a written, fully executed | ||
change order exceeds 10 percent of the subcontractor's subcontract | ||
amount. | ||
(d) A vendor 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. | ||
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