(a) The total amount of money recoverable on a claim for breach of contract under this chapter may not, after deducting the amount specified in Subsection (b), exceed an amount equal to the sum of:
(1) the balance due and owing on the contract price;
(2) the amount or fair market value of orders or requests for additional work made by a unit of state government to the extent that the orders or requests for additional work were actually performed; and
(3) any delay or labor-related expense incurred by the contractor as a result of an action of or a failure to act by the unit of state government or a party acting under the supervision or control of the unit of state government.
(b) Any amount owed the unit of state government for work not performed under a contract or in substantial compliance with its terms shall be deducted from the amount in Subsection (a).

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Terms Used In Texas Government Code 2260.003

  • Contract: A legal written agreement that becomes binding when signed.
  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
  • Written: includes any representation of words, letters, symbols, or figures. See Texas Government Code 311.005

(c) Any award of damages under this chapter may not include:
(1) consequential or similar damages, except delays or labor-related expenses described by Subsection (a)(3);
(2) exemplary damages;
(3) any damages based on an unjust enrichment theory;
(4) attorney’s fees; or
(5) home office overhead.
(d) Notwithstanding Subsection (c), an award of damages under this chapter may include attorney’s fees if:
(1) the claim is for breach of a written contract for:
(A) engineering, architectural, or construction services; or
(B) materials related to the services described by Paragraph (A); and
(2) the amount in controversy is less than $250,000, excluding penalties, costs, expenses, prejudgment interest, and attorney’s fees.