88R13419 ATP-F
 
  By: Bell of Kaufman H.B. No. 3485
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  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.