New Construction Laws Coming Sept 1st

During the 88th Legislative Session which was completed on May 29, 2023, the following pieces of legislation were passed and then signed by the Governor.  These laws will become effective September 1, 2023.

HB 3485 by Rep. Keith Bell and Sen. Nathan Johnson
Amends the Prompt Pay Acts to address excessive owner-directed change orders.  A Contractor may refuse owner-directed additional work IF: the change order is unsigned; AND the estimate for the work exceeds 10% of contract price.  HB 3485 applies to Public AND Private Work.  It is effective for all contracts signed after September 1, 2023.

HB 2518 by Rep. Keith Bell and Sen. Robert Nichols
Requires performance and payment bonds on private projects on public lands by amending the Government Code to require any lease of public land include lease terms that: require performance and payment bonds; AND require Notice to the public entity 90 days prior to construction.  If public entity receives Notice without bonds, it may halt construction within 10 days. If public entity receives Notice without bonds and does not halt construction, public entity will be responsible as surety.  Effective for all leases signed after September 1, 2023

HB 679 by Rep. Keith Bell and Sen. Charles Schwertner
Prohibits the use of a specified experience modifier for public projects only. Owners may still request the experience modifier.  Effective September 1, 2023.

HB 2965 by Rep. Cody Vasut and Sen. Brandon Creighton
Amends Right to Repair statute for public works passed in 2021 to add a NO WAIVER provision to statute.  Effective September 1, 2023. 

H.B. 2022 by Rep. Jeff Leach & Sen. Phil King
Limits a home builder’s liability to actual home defects; allows for up to three inspections after receipt of complaint, and increases a contractor’s deadline to make an offer to repair from 45 days to 60.  Effective September 1, 2023.

H.B. 2024 by Rep. Jeff Leach & Sen. Phil King
Reduces the Statute of Repose for residential construction from 10 years to 6 years for warranteed work.  This became effective on June 9, 2023.

H.B. 4123 by Rep. Ryan Guillen & Sen. Judith Zaffirini
Clarifies statutes addressing who has access to criminal history records for purposes of background checks for school construction.  Unlike others, this change was effective immediately upon being signed by the Governor on June 13, 2023.

A full list of all new laws can be found HERE.