House Bill No. 386 amends Section 271.060 of the Local Government Code to adjust the change order limits for certain construction contracts. The bill 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. This change aims to provide more flexibility in managing construction contracts while ensuring that significant increases are still regulated.

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, ensuring that existing contracts remain governed by the previous law.

Statutes affected:
Introduced: Local Government Code 271.060 (Local Government Code 271)
House Committee Report: Local Government Code 271.060 (Local Government Code 271)
Engrossed: Local Government Code 271.060 (Local Government Code 271)