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.)
Click here to see the committee vote
 
 
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) 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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