HB 386: bill loosening change order limits on local construction contracts

Caption

relating to change order limits for certain construction contracts.

Summary

Local governments can raise contract prices more after signing.

The bill loosens the limits on how much a local government can raise the price of a construction contract after it is signed. It moves the 25 percent cap so it covers only contracts of $5 million or more instead of $1 million or more, lets contracts under $5 million grow by up to 50 percent or $1 million, whichever is greater, and lets staff approve change orders of up to $250,000 instead of $50,000 without a vote. Counties, cities and other local bodies that sign construction contracts on or after September 1, 2025, and the contractors they hire, would see bigger price increases allowed with less direct oversight by the governing body.

Labels

Labels: ZOMBIE BILL. Died 2 times: 88R HB 2854 (Died in committee) and this bill (Did not pass). Checked against 88R only.BACK FROM THE DEAD. Same text as a bill filed before that died: 88R HB 2854 (Died in committee). Filed in 2 sessions, counting this one. Checked against 88R only.TRY NO. 2. Filed in 2 sessions: 88R and 89R. Checked against 88R only.ACROSS THE AISLE. Joint authors: 2 Republicans, 1 Democrat. Party as the Legislative Reference Library lists it for the 89th Legislature.GOT HALFWAY. Passed the House on May 15, 2025. Died in the Senate: received, never referred to a committee.

Receipt

The receipt

89R-HB386 · 2024-11-12

SOLD BY

Rep. Barbara Gervin-HawkinsDHouse 120

Rep. Janie LopezRHouse 37

Rep. Cole HefnerRHouse 5

ITEM

relating to change order limits for certain construction contracts.

WHAT IT DOES

Local governments can raise contract prices more after signing.

The bill loosens the limits on how much a local government can raise the price of a construction contract after it is signed. It moves the 25 percent cap so it covers only contracts of $5 million or more instead of $1 million or more, lets contracts under $5 million grow by up to 50 percent or $1 million, whichever is greater, and lets staff approve change orders of up to $250,000 instead of $50,000 without a vote. Counties, cities and other local bodies that sign construction contracts on or after September 1, 2025, and the contractors they hire, would see bigger price increases allowed with less direct oversight by the governing body.

CHARGES

[ ] NONE FOUND

TOTAL

No fiscal implication to the State is anticipated.

LBB estimate · fiscal note version I · source

Sources

Fiscal note · version I · April 11, 2025

No first-year general revenue figure available here.

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

HISTORY

Nov 12, 2024Filed
Feb 28, 2025Read first time
Feb 28, 2025Referred to Intergovernmental Affairs
Apr 15, 2025Scheduled for public hearing on . . .
Apr 15, 2025Considered in public hearing
Apr 15, 2025Testimony taken/registration(s) recorded in committee
Apr 15, 2025Left pending in committee
Apr 28, 2025Considered in formal meeting
Apr 28, 2025Reported favorably w/o amendment(s)
May 7, 2025Comte report filed with Committee Coordinator
May 7, 2025Committee report distributed
May 8, 2025Committee report sent to Calendars
May 9, 2025Considered in Calendars
May 11, 2025Placed on General State Calendar
May 14, 2025Read 2nd time
May 14, 2025Passed to engrossment
May 14, 2025Record vote RV#2507
May 14, 2025Statement(s) of vote recorded in Journal
May 15, 2025Read 3rd time
May 15, 2025Passed
May 15, 2025Record vote RV#2624
May 15, 2025Statement(s) of vote recorded in Journal
May 15, 2025Reported engrossed
May 15, 2025Received from the House

FILED UNDER

No verified beat found.

SIGNED FOR BY

House · 90 yea · 48 nay

Sources

House: Final passage · May 15, 2025. Journal. Published stock for this vote. Snapshot 2026-10-19, Central time.

All floor motions and other positions below.

No flags

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

Barbara Gervin-Hawkins

Donors

Texas Trial Lawyers Association PAC$36K Texas Sands PAC$34K Legacy 44$17K

Not tied to this bill.

Sources

The author's campaign account only. Own money and internal transfers are separate on the member page.

Derived itemized flow · Aug 6, 2024 to Feb 21, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Texas Trial Lawyers Association PAC$36,000.00

Texas Trial Lawyers Association PAC

$36,000.00

Cash: $36,000.00
Paid by others: $0.00
Total: $36,000.00

Also funds 137 other sitting lawmakers.

Derived recipient stock · Jul 24, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Sep 20, 2024 to Feb 21, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100981675, 101026167, 101035798, 101038806.

Texas Sands PAC$34,000.00

Texas Sands PAC

$34,000.00

Cash: $34,000.00
Paid by others: $0.00
Total: $34,000.00

Also funds 121 other sitting lawmakers.

Derived recipient stock · Jul 3, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Oct 1, 2024 to Feb 12, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100981675, 101038806.

Legacy 44$17,000.00

Legacy 44

$17,000.00

Cash: $1,000.00
Paid by others: $16,000.00
Total: $17,000.00

digital $16,000.00

Also funds 33 other sitting lawmakers.

Derived recipient stock · Oct 21, 2024 to Oct 20, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Nov 18, 2024 to Feb 20, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100981675, 101038806.

Money

Missing data does not establish zero giving. Display amounts are rounded.

×

Texas Trial Lawyers Association PAC

$36,000.00

Cash: $36,000.00
Paid by others: $0.00
Total: $36,000.00

Also funds 137 other sitting lawmakers.

Derived recipient stock · Jul 24, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Sep 20, 2024 to Feb 21, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100981675, 101026167, 101035798, 101038806.

×

Texas Sands PAC

$34,000.00

Cash: $34,000.00
Paid by others: $0.00
Total: $34,000.00

Also funds 121 other sitting lawmakers.

Derived recipient stock · Jul 3, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Oct 1, 2024 to Feb 12, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100981675, 101038806.

×

Legacy 44

$17,000.00

Cash: $1,000.00
Paid by others: $16,000.00
Total: $17,000.00

digital $16,000.00

Also funds 33 other sitting lawmakers.

Derived recipient stock · Oct 21, 2024 to Oct 20, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Nov 18, 2024 to Feb 20, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100981675, 101038806.

Votes2

House May 15, 2025

Yea: 90
Nay: 48
Present, not voting: 2
Absent: 2
Excused: 8

Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 2624

HB 386 was passed by (Record 2624): 90 Yeas, 48 Nays, 2 Present, not voting.

Published stock of positions for this vote, except where marked derived.

Yea: 90 (published)
Nay: 48 (published)
Present, not voting: 2 (published)
Absent: 2 (derived from named list)
Excused: 8 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

House May 14, 2025

Yea: 80
Nay: 52
Present, not voting: 2
Absent: 8
Excused: 8

Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 2507

HB 386 was passed to engrossment by (Record 2507): 80 Yeas, 52 Nays, 2 Present, not voting.

Published stock of positions for this vote, except where marked derived.

Yea: 80 (published)
Nay: 52 (published)
Present, not voting: 2 (published)
Absent: 8 (derived from named list)
Excused: 8 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

Witnesses16

For: 16
Against: 0
On: 0

Names

For

Associated Builders and Contractors of Texas, Inc.1 registration
Bexar County Commissioners Court1 registration
City of Dallas1 registration
City of Fort Worth1 registration
City of Houston1 registration
City of San Antonio1 registration
Conference of Urban Counties1 registration
County Judges & Commissioneers Association of Texas1 registration
County Judges and Commissioners Association of Texas1 registration
Dallas County1 registration
El Paso County1 registration
Gallagher Construction1 registration
Johnson County and County Judges & Commissioners Association of Texas1 registration
Texas State Association of Fire and Emergency Districts1 registration
Texas Water Infrastructure Network (TXWIN)1 registration
Travis County Commissioners Court1 registration

Sources

16 parsed registrations across the loaded witness lists.

Derived stock of witness registrations. Repeated appearances count separately. Organizations and self-representation appear as printed.

House witness list. Source snapshot 2026-10-20, Central time.

Fiscal

No fiscal implication to the State is anticipated.

LBB estimate · fiscal note version I · source

Sources

Fiscal note · version I · April 11, 2025

No first-year general revenue figure available here.

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

How this was graded

Analysis of text version I by claude-opus-5-5, Oct 20, 2026, against the published rubric.

FILED BEFORE

Filed 2 times: 88R and 89R. Checked against 88R only.

88R HB 2854

by Rep. Gervin-Hawkins, same lead author · Died in committee · same text

Introduced text

Last action, Mar 14, 2023: Referred to County Affairs

Relating to change order limits for construction contracts.

Caption, 88R bill history

Sources

Texas House · Filed Nov 12, 2024

05/15/2025 S Received from the House

Texas Legislature Online · Introduced · House Committee Report · Engrossed

Data snapshot Oct 26, 2026 at 4:20 AM CDT. Grades, charges, quotes and corrections follow the published record.

House committee · Intergovernmental Affairs · Committee vote 7 aye, 3 nay, 1 absent · Out of committee

Subjects

City Government--Finance

City Government--General

County Government--Finance

County Government--General

Purchasing--Local

CONTRACTORS & SUBCONTRACTORS

Text

The text as introduced · 275 words

89R3615 CS-F

By: Gervin-Hawkins
H.B. No. 386

A BILL TO BE ENTITLED

AN ACT

relating to change order limits for certain construction contracts.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 271.060, Local Government Code, is

amended by amending Subsections (c) and (d) and adding Subsection

(c-1) to read as follows:

(c) A contract with an original contract price of $5 million

[ $1 million ] or more may not be increased by more than 25 percent.

If a change order for a contract with an original contract price of

less than $5 million [ $1 million ] increases the contract amount to

$5 million [ $1 million ] or more, subsequent change orders may not

increase the revised contract amount by more than 25 percent.

(c-1) A contract with an original contract price of less

than $5 million may not be increased in the aggregate by more than

the greater of:

(1) 50 percent; or

(2) $1 million.

(d) A governing body may grant authority to an official or

employee responsible for purchasing or for administering a contract

to approve a change order that involves an increase or decrease of

$250,000 [ $50,000 ] or less.

SECTION 2. The changes in law made by this Act apply only to

a contract entered into on or after the effective date of this Act.

A contract entered into before the effective date of this Act is

governed by the law in effect on the date the contract was entered

into, and the former law is continued in effect for that purpose.

SECTION 3. This Act takes effect September 1, 2025.

Verdict: No flags

The receipt

SOLD BY

ITEM

WHAT IT DOES

CHARGES

TOTAL

HISTORY

SIGNED FOR BY

Donors

Texas Trial Lawyers Association PAC

Texas Sands PAC

Legacy 44

Texas Trial Lawyers Association PAC

Texas Sands PAC

Legacy 44

House May 15, 2025

House May 14, 2025

For

88R HB 2854