88R13419 ATP-F     By: Bell of Kaufman H.B. No. 3485       A BILL TO BE ENTITLED   AN ACT   relating to a contractor's or subcontractor's right to elect not to   proceed with additional work under a contract.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter D, Chapter 2251, Government Code, is   amended by adding Section 2251.0521 to read as follows:          Sec. 2251.0521.  UNSIGNED CHANGE ORDER. (a) A contractor or   subcontractor may elect not to proceed with additional work   directed by a governmental entity if:                (1)  the contractor or subcontractor has not received a   written, fully executed change order for the governmental   entity-directed additional work; and                (2)  the aggregate actual or anticipated value of the   additional work plus any previous governmental entity-directed   additional work for which the contractor or subcontractor has not   received a written, fully executed change order exceeds 10 percent   of the contractor's or subcontractor's original contract amount.          (b)  A contractor or subcontractor who elects not to proceed   with additional work as provided by this section is not responsible   for damages associated with the election not to proceed.          SECTION 2.  Chapter 28, Property Code, is amended by adding   Section 28.0091 to read as follows:          Sec. 28.0091.  UNSIGNED CHANGE ORDER. (a) A contractor or   subcontractor may elect not to proceed with additional work   directed by an owner if:                (1)  the contractor or subcontractor has not received a   written, fully executed change order for the owner-directed   additional work; and                (2)  the aggregate actual or anticipated value of the   additional work plus any previous owner-directed additional work   for which the contractor or subcontractor has not received a   written, fully executed change order exceeds 10 percent of the   contractor's or subcontractor's original contract amount.          (b)  A contractor or subcontractor who elects not to proceed   with additional work as provided by this section is not responsible   for damages associated with the election not to proceed.          SECTION 3.  Section 2251.0521, Government Code, and Section   28.0091, Property Code, as added by this Act, apply only to a   contract entered into on or after the effective date of this Act.          SECTION 4.  This Act takes effect September 1, 2023.