ABC Texas Testimony on HB 386

Testimony of Ana Grace Husted, Director of Advocacy and Outreach, Associated Builders and Contractors of Texas, before the Texas House of Representatives Committee on Intergovernmental Affairs

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Chairman Bell, Vice Chair Zwiener, and Committee Members,

I’m here today in support of HB 386 because it’s a straightforward, common-sense fix that helps local governments keep projects on track.

Right now, there’s a hard cap on how much flexibility cities, counties, and school districts have when a project runs into unexpected cost changes — like material prices increasing or delays out of their control. If that cap is exceeded, they have to pause everything, repost or re-approve the contract, and lose valuable time.

HB 386 simply raises that limit from $1 million or 25% to $5 million or 25%, giving smaller and mid-sized projects more flexibility to keep moving without getting caught up in red tape. Oversight is still there — this bill just reflects the reality of today’s construction costs and timelines.

Contractors and public owners both want to deliver quality work on schedule. This bill helps make that possible when the unexpected happens.

I’m happy to answer any questions.