The bill amends Section 271.060 of the Local Government Code to adjust the limits on change orders for construction contracts. Specifically, it raises the threshold for contracts that may not be increased by more than 25 percent from an original contract price of $1 million to $5 million. Additionally, for contracts with an original price of less than $5 million, the bill establishes that the total increase cannot exceed the greater of 50 percent of the original contract price or $1 million.

Furthermore, the bill increases the authority of officials or employees responsible for purchasing or administering contracts, allowing them to approve change orders involving increases or decreases of up to $250,000, up from the previous limit of $50,000. The changes will apply only to contracts entered into on or after the effective date of the Act, which is set for September 1, 2025. Contracts established before this date will continue to be governed by the existing law.

Statutes affected:
Introduced: Local Government Code 271.060 (Local Government Code 271)