Relating to change order limits for certain construction contracts.

HB 386 sets new limits on increases to construction contracts for Texas local governments. It caps total increases at 25% for contracts originally $5 million or more, and for smaller contracts (under $5 million), it limits increases to the greater of 50% or $1 million. The bill also lowers the threshold for routine change order approvals from $250,000 to $50,000, allowing lower-level staff to handle smaller adjustments. These changes apply only to contracts signed on or after September 1, 2025, and do not affect existing contracts.