Rep. Paul Workman

Rep. Paul Workman

HB 1124 by Rep. Paul Workman (R-Austin) has filed legislation to modify Chapter 114, CPRC, which governs the adjudication of disputes between a state agency and contractors based on written contracts for architectural, engineering, or construction services if the amount in dispute is at least $250,000.

HB 1124 broadens the waiver of sovereign immunity for breach of contract claims against state agencies by eliminating the $250,000 applicability threshold and allowing claims for any breach of contract, not just for a breach “of an express provision” of the contract.

The bill also expands recoverable damages to include: (1) compensation for the increased cost to perform work caused by owner-caused delays or acceleration, regardless of whether such compensation is expressly provided in the contract; (2) amounts owed by oral change orders (current law limits recovery to written change orders), as well as any additional work the contractor is directed by the state agency to perform in connection with the contract; and (3) reasonable and necessary attorney’s fees that are equitable and just (current law limits recovery to attorney’s fees only if the contract specifies that all parties can recover attorney’s fees, including the state).

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