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A BILL TO BE ENTITLED
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AN ACT
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relating to change order limits for construction contracts. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 271.060, Local Government Code, is |
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amended by amending Subsections (c) and (d) and adding Subsection |
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(c-1) to read as follows: |
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(c) A contract with an original contract price of $5 million |
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[$1 million] or more may not be increased by more than 25 percent. |
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If a change order for a contract with an original contract price of |
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less than $5 million [$1 million] increases the contract amount to |
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$5 million [$1 million] or more, subsequent change orders may not |
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increase the revised contract amount by more than 25 percent. |
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(c-1) A contract with an original contract price of less |
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than $5 million may not be increased in the aggregate by more than |
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the greater of: |
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(1) 50 percent; or |
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(2) $1 million. |
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(d) A governing body may grant authority to an official or |
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employee responsible for purchasing or for administering a contract |
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to approve a change order that involves an increase or decrease of |
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$250,000 [$50,000] or less. |
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SECTION 2. The changes in law made by this Act apply only to |
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a contract entered into on or after the effective date of this Act. |
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A contract entered into before the effective date of this Act is |
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governed by the law in effect on the date the contract was entered |
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into, and the former law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2023. |