Texas HB2463 allows contractors to claim compensatory damages for delays caused by governmental entities in construction contracts.

Texas HB2463 amends the Government Code to allow contractors to claim compensatory damages for delays caused by governmental entities in construction contracts. The bill specifies that damages cannot include special damages, consequential damages, home office overhead, profit on indirect costs, or additional work costs agreed upon by both parties. The provision does not apply to contracts for natural disaster recovery or those subject to Section 201.112 of the Transportation Code. The bill takes effect on September 1, 2025.

Texas HB2463 allows contractors to claim compensatory damages for delays caused by governmental entities in construction contracts.

Texas HB2463 amends the Government Code to allow contractors to claim compensatory damages for delays caused by governmental entities in construction contracts. The bill specifies that damages cannot include special damages, consequential damages, home office overhead, profit on indirect costs, or additional work costs agreed upon by both parties. The provision does not apply to contracts for natural disaster recovery or those subject to Section 201.112 of the Transportation Code. The bill takes effect on September 1, 2025.