Construction / 1 min read
Texas contractors and subcontractors now have a statutory right to refuse to perform additional owner-directed work under certain circumstances. Section 28.0091 of the Texas Property Code went into effect on September 1, 2023, and allows contractors and subcontractors to decline to perform additional work directed by an owner if (1) they have not received a written, fully executed change order for the additional work, and (2) the anticipated cost of the additional work—plus any previous owner-directed additional work—exceeds ten percent of the original contract or subcontract amount.
Providing further protection for contractors and subcontractors, Section 28.0091(c) states that a contractor or subcontractor who declines to perform additional owner-directed work in accordance with the provision is not responsible for damages associated with declining to perform such work. Section 28.0091 was added to Chapter 28 of the Texas Property Code, also known as the Texas Prompt Pay Act, through passage of Texas HB 3485.