Central Texas AGC Advocates for the Construction Industry
Central Texas AGC is the voice of the construction industry at the local, state, and national levels, actively working to prevent policy changes that could negatively impact commercial construction. Our legislative contingency spans eight counties and includes three State Senators and seven State Representatives.
We engage with these offices multiple times each legislative session, as well as during the interim, to advocate for the industry's interests. Our team and General Contractors make personal visits on Legislative Day, reinforcing our message with follow-up calls and handwritten notes on key issues.
We’re fortunate to have strong support from our legislative representatives, who recognize the importance of small businesses and the construction industry.
Stay tuned for more updates—we’ll continue keeping you informed on what’s happening at the Capitol!
Construction Successes from the 89th Legislative Session (2025):
Texas venue for resolving disputes on Texas construction projects
HB 2960 (Hayes)
Background
For decades Texas construction contractors have been protected by statute from having to go outside Texas to litigate disputes on Texas construction projects. A recent decision by the 14th Court of Appeals in In re MVP Terminalling LLC (2023) potentially wipes out decades of protections by ruling the statute can be waived. This means dozens of Texas contractors on a project may have to go to New York or even overseas to litigate disputes on Texas construction projects.
Proposed legislation
HB 2960 would restore decades of clarity in Texas law: disputes on Texas construction projects will be resolved in Texas courts—and in the county where the project is located. This is important because, by statute, any lien claims on Texas construction projects must be filed in the county where the project is located.
Supporters
AGC-Texas Building Branch
ABC of Texas
Texas Construction Association
Each party to a public construction project is responsible for their own delays:
SB 776 (Hughes), HB 2463 (Leach)
Background
Contracts only work if the contract terms are mutually enforceable by both parties. Recently, several governmental entities have insisted on contract provisions that make the construction contractor responsible for delays caused by the governmental entity owner.
Owner-caused delays = higher costs, which are forced onto the private sector company who did not cause, and cannot control, those delays. This is strong leverage that the owner can then use to eviscerate, manipulate, or even ignore other terms in the contract against the private-sector contractor (e.g., schedule, liquidated damages, change orders, etc.).
Proposed legislation
This bill would clarify as a matter of public policy that public owners cannot use contract terms to push financial responsibility for their own delays onto private sector contractors who did not cause, and have no control over, those delays.
This is a refiling of a 2023 bill (HB 2265 by Leach/Hughes) that passed the House 136-8 and passed Senate committee 8-1 but died in the last days of session.
Workforce: establish the first-ever endowment for Texas State Technical College (TSTC) to build needed campuses around Texas for training workers in construction and other vocations experiencing dramatic shortages.
SJR 59 (Birdwell), HJR 5 (Lambert)
Background
We have a severe shortage of workers in Texas across several industries, including construction. This is dramatically escalating the cost of construction projects. Unlike junior colleges, which have revenue from property taxes and student tuition—and can issue bonds to build campuses—Texas State Technical College (TSTC) has no such revenue streams and must approach the Legislature every two years to build a campus.
Proposed legislation
This legislation would create a $850 million permanent endowment, subject to voter approval, for TSTC to use the interest to build much-needed campuses around Texas to train students to fill jobs specifically identified by employers as having shortages.
The $850 million is also included in both budget bills, HB 1 and SB 1.
Last session (2023), this legislation passed the Senate 30-0 and the House 146-0 but died in the last hour of session over disagreements between the House and Senate versions.
Shorten the “statute of repose” (i.e., time period to sue contractors for defects) on private commercial projects from 10 years to 8 years.
HB 3223 (Leach)
Background
The “statute of repose” refers to the time period allowed to sue for construction defects.
In 2021 the Legislature shortened the statute of repose on public projects from 10 years to 8 years.
In 2023 the Legislature shortened the statute of repose on private, single family residential projects from 10 years to 6 years, provided additional warranties are supplied.
For private commercial projects, Texas has the second-longest statute of repose in the nation at 10 years—tied with CA, HI, IL, ME, NJ, OR, RI, and others. Compare this with AR (4years), TN (4 years), LA (5 years), NC (6 years), CO (6 years), and GA (8 years).
Proposed legislation
HB 3223 would shorten the statute of limitations on private commercial projects from an extreme of 10 years to 8 years.
Supporters
AGC-Texas Building Branch
ABC of Texas
Texas Construction Association
Texas American Council of Engineering Companies
Fix issues with some owners on construction projects using the construction manager-at-risk (CMAR) or design-build (DB) delivery methods.
HB 2148 by Gervin Hawkins (cost of work)
HB 3005 by Gervin Hawkins (timely audits)
Background on HB 2148:
Owners are inconsistent in what is considered “cost of work” on some CMAR and DB projects, including applying different pricing limits to self-performed work vs. subcontracted work.
Background on HB 3005:
Some owners are doing never ending audits that wire around the State’s Prompt Pay Act. These audits effectively undo the job fee that owners and contractors agreed to per statute.
Proposed legislation – HB 2148, HB 2148:
Would clarify what constitutes “cost of work” on CMAR and DB projects and eliminate differential treatment between self-performed work vs. subcontracted work.
Proposed legislation – HB 3005, HB 3005:
Would clarify that audits on construction projects are subject to the Texas Prompt Pay Act and must be completed within 60 days of the project’s substantial completion.
Construction Successes from the 86th Legislative Session (2019):
AGC-Texas Building Branch Legislative Priorities 2025
Requiring School Construction Defects Money to be Spent on Repairing the Defects (HB 1734, effective 9-1-2019) – All ISDs must notify TEA in writing when they sue for defects by sending a copy of the petition and an itemization of the alleged defects. Any monies recovered by the ISD in that suit must be spent on repairing the defects, or the ISD can get TEA’s written approval to spend on something else. The ISD must send to TEA an itemized accounting of the repairs made. If the AG believes an ISD isn’t complying, the AG can step in with fines and injunctions. The AG must send annual reports to the Governor, TEA, and the Legislature on defects lawsuits that are filed.
Public Building Projects Right to Repair Construction and Design Defects (HB 1999, effective 9-1-2019) – Before suing a contractor or A/E for defects on a commercial building project, the Owner must give a detailed, written report of the defects to the contractors/A/E—who then have 30 days to inspect the defects and 120 days to repair the defects. Exceptions for failure to provide bonding/insurance; previously terminated for cause; been convicted of a felony; situations requiring emergency repairs.
TLR Bill Regulating Local Govts’ Hiring of Contingency Plaintiff’s Lawyers for Defects Cases (HB 2826, effective 9-1-2019) – Requires local govt's to procure contingency fee lawyers like normal professional services: in public meeting, not behind closed doors; vote by board; must select most qualified; must make public statement about reason for hiring, qualifications, nature of relationship, why owner can’t use in-house lawyers, why owner can’t use hourly lawyers, etc. Before owner signs contract w/ contingency fee lawyer, AG must approve. Attorney’s fees can’t be approved until time records are verified as reasonable and necessary.
Other Procurement/Construction Issues that PASSED:
A/E Certificate of Merit on Third-Party Claims (SB 1928, effective 6-10-2019) – Extends existing A/E certificate of merits required in original lawsuits to include to later third-party claims as well.
Project Labor Agreements on State Projects (HB 985, effective 9-1-2019) – ABC priority bill. Prevents govt entities from requiring or prohibiting pre-hire collective bargaining agreements on construction using state money or state credit—universities, state buildings, most school buildings.
Disclosure of Certain Contracting Information Under Public Information Law (SB 943, effective 1-1-2020) – As originally filed, it would’ve made contractors directly subject to public info requests as if they were a govt entity (among other things). We got all that stripped out. It expands public disclosure for govt contracts, adds recordkeeping duties, and revises exceptions to required disclosures.
Bans $100,000+ Government Contracts With Companies That Boycott Israel That Have at Least 10 Full-Time Employees (HB 793, effective 5-7-2019)
Limiting Cities’ Ability to Specify Building Products, Materials, or Methods Used in Commercial and Residential Construction Outside of Adopted Code (HB 2439, effective 9-1-2019)
Allowing Texas Workforce Commission Apprentice Grants to Private Entities for Workforce Training (HB 2784, effective 9-1-2019)
Construction Successes from Past Legislative Sessions:
In an 84th Texas Legislature (2015) populated by hot button issues, the construction industry quietly collected some huge victories. Those wins for contractors primarily came in the form of billions of dollars in new work, economic development and tax savings.
By comparison, the 85th Texas Legislature (2017) was known as the nastiest, most grueling session in anyone’s memory with the second-most bills filed in state history, the fewest number of bills passed since 1995, and the lowest percentage of bills passed in the past 126 years. The construction industry still saw a few bills make it into law while others died awaiting action or were vetoed by the Governor. Stay tuned for the mid-terms, where all 150 house members, half of the senate, and state leadership will be up for grabs.
AGC-TBB Legislative Day (March 12, 2015) – More than 120 contractors from across the state showed up at the Capitol to champion key construction industry causes, with a focus on higher education construction funding, breach of contract fixes, and statute of repose reform. AGC-TBB met regularly with several groups in session, including ABC of Texas, Texas Construction Association, Texas Building & Construction Trades, Texas Business Roundtable, Texas Taxpayers and Research Association.
Capital Funding – With the passage of the 2016-17 budget, Texas is poised to see roughly $1.7 billion in the construction of new buildings and repair of aging structures over the next two years. The lion's share of construction funding is contained in the budget for the Facilities Commission, which was granted $1.34 billion in its total budget for the next two fiscal years. That figure is a more than 600-percent boost from its past budget. Most of the Facilities Commission funding is set aside for construction of new state buildings. The rest of the funding is dedicated for health and safety and deferred maintenance projects at state facilities.
Campus Construction Funding – Texas contractors will see $3.1 billion in construction projects at public universities over the next two years under the Legislature's approved budget. This successful push was in dire need this session, as such a package had not passed since 2006. The final version of the bill funds 64 projects across the state with each capped at $90 million.
Tax Cuts – While both chambers agreed on some form of relief from the state business franchise tax, they had different visions on how to best reduce the tax burden. Eventually, the two sides compromised on a 25 percent across-the board cut to the franchise tax. The franchise tax-cut measure will save Texas businesses more than $2 billion over the next two years and allow more businesses to use a simplified method of computing what they owe under the tax. The bill raises the revenue threshold on the flat-rate portion of the tax from $10 million to $20 million, meaning businesses with revenue levels over $1 million and up to $20 million can claim a lower tax rate of 0.331 percent. Businesses with revenue under $1 million will still avoid the tax altogether.
Other Construction Issues with Definitive Change:
Contracting Transparency – As a result of scandals revealed within state agencies such as the Health and Human Services Commission early in the session, ethics reform became a top priority for Gov. Greg Abbott. Three major contracting reform bills passed covering project oversight, disclosure of gifts from a contractor to an official, and disclosure of interested parties when contracts exceed $1 million.
Economic Development – The Center for Alternative Finance and Procurement was established within the Texas Facilities Commission to assist governmental entities in the receipt of proposals, negotiation of agreements, and management of qualifying public-private partnership (P3) projects. The bill is intended to provide an "objective resource" for lawmakers and governmental entities when deciding whether to use alternative financing methods. The bill also prohibits "unsolicited proposals" from private entities for P3 projects.
Insurance & Liability – Two bills passed that affect architects and engineers. The first prohibits a governmental entity's architect or engineer, or any related entities, from serving as a construction manager-at-risk, whether alone or in combination with another person. The second bill to pass removes from law the obligations of architects and engineers to defend local governments and limits their obligation to repay local governments for liability from negligence or fault. The bill also allows local governments to be insured on the architect or engineer's general liability policy and establishes a standard of care for architects and engineers to perform services.
Contract Preferences and Bans – Bills were passed that provide preference for American iron and steel in all state and local construction contracts, although there were many loopholes included. A ban on the state requiring an A/E t o indemnify or defend state’s negligence as well as a ban on local govts’ fees on new construction to subsidize affordable housing were signed into law.
Education and Workforce - A whole slew of workforce education/vocational bills were signed into law dealing with the intersection of high school, junior colleges, and higher ed relating to vocational coursework, credits, and funding, including incentives for plumbers and AC/refrigeration certification.