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Bill

HB 386

Relating to change order limits for certain construction contracts.

89th Legislature (2025) Introduced by Barbara Gervin-Hawkins and 2 co-sponsors

Texas HB 386 establishes or modifies change order limits for construction contracts to regulate cost modifications and approval procedures during project execution.

Received from the House
#contractors&subcontractors(s2563) #citygovernment--finance(i0062) #citygovernment--general(i0060) #countygovernment--finance(i0097) #countygovernment--general(i0096) #purchasing--local(i0644)
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Bill Summary · HB 386

Legislative bill overview

HB 386 modifies the authority and procedures governing change orders for construction contracts, likely establishing new limits or requirements for how contractors and project owners can modify contract terms during construction. The bill has passed its third reading and final approval in the Texas House, indicating it is moving toward potential Senate consideration or gubernatorial action.

Why is this important

Change order provisions directly affect construction project costs, timelines, and dispute resolution between contractors and owners. Clearer limits or procedures can prevent cost overruns, reduce litigation, and provide budgeting certainty for both public and private construction projects across Texas.

Potential points of contention

  • Threshold definitions: Disagreement over what dollar amounts or percentage increases should trigger stricter change order approval processes
  • Public vs. private projects: Whether different standards should apply to government-funded construction versus private development, affecting competitive bidding and transparency requirements
  • Contractor flexibility: Concerns that overly restrictive change order limits could penalize contractors for unforeseen site conditions or design changes, potentially increasing project costs through other mechanisms

Compiled from official sources — confirm details with the bill’s official record.

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