Texas HB386 amends change order limits for construction contracts, setting caps on increases.

Texas HB386 modifies the Local Government Code to establish limits on change orders for construction contracts. For contracts with an original price of $5 million or more, the total increase cannot exceed 25%. If a contract initially under $5 million is increased to $5 million or more through a change order, subsequent increases are also capped at 25%. Contracts originally under $5 million cannot increase by more than 50% or $1 million, whichever is greater. The law applies to contracts entered into after its effective date of September 1, 2025.

Texas HB386 amends change order limits for construction contracts, setting caps on increases.

Texas HB386 modifies the Local Government Code to establish limits on change orders for construction contracts. For contracts with an original price of $5 million or more, the total increase cannot exceed 25%. If a contract initially under $5 million is increased to $5 million or more through a change order, subsequent increases are also capped at 25%. Contracts originally under $5 million cannot increase by more than 50% or $1 million, whichever is greater. The law applies to contracts entered into after its effective date of September 1, 2025.