Tex. Codes » Local Government Code · TITLE 8. ACQUISITION, SALE, OR LEASE OF PROPERTY · SUBTITLE C. ACQUISITION, SALE, OR LEASE PROVISIONS APPLYING TO MORE THAN ONE TYPE OF LOCAL GOVERNMENT · CHAPTER 271. PURCHASING AND CONTRACTING AUTHORITY OF MUNICIPALITIES, COUNTIES, AND CERTAIN OTHER LOCAL GOVERNMENTS
Texas Codes

Tex. Loc. Gov't Code § 271.153 (2026)

Limitations On Adjudication Awards

✓ current as of May 2026
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Sec. 271.153. LIMITATIONS ON ADJUDICATION AWARDS. (a) Except as provided by Subsection (c), the total amount of money awarded in an adjudication brought against a local governmental entity for breach of a contract subject to this subchapter is limited to the following:

(1) the balance due and owed by the local governmental entity under the contract as it may have been amended, including any amount owed as compensation for the increased cost to perform the work as a direct result of owner-caused delays or acceleration;

(2) the amount owed for change orders or additional work the contractor is directed to perform by a local governmental entity in connection with the contract;

(3) reasonable and necessary attorney's fees that are equitable and just; and

(4) interest as allowed by law, including interest as calculated under Chapter 2251, Government Code.

(b) Damages awarded in an adjudication brought against a local governmental entity arising under a contract subject to this subchapter may not include:

(1) consequential damages, except as expressly allowed under Subsection (a)(1);

(2) exemplary damages; or

(3) damages for unabsorbed home office overhead.

(c) Actual damages, specific performance, or injunctive relief may be granted in an adjudication brought against a local governmental entity for breach of a contract described by Section 271.151(2)(B).

Added by Acts 2005, 79th Leg., Ch. 604 (H.B. 2039), Sec. 1, eff. September 1, 2005.

Amended by:

Acts 2009, 81st Leg., R.S., Ch. 1266 (H.B. 987), Sec. 8, eff. June 19, 2009.

Acts 2011, 82nd Leg., R.S., Ch. 226 (H.B. 345), Sec. 1, eff. September 1, 2011.

Acts 2013, 83rd Leg., R.S., Ch. 1138 (H.B. 3511), Sec. 3, eff. June 14, 2013.

Notes of Decisions
Cited in 16 cases (2 in the last 5 years), 2007–2025 · leading case: dallas/fort Worth Int'l Airport Bd. v. Vizant Tech., Llc, 576 S.W.3d 362 (Tex. 2019).
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dallas/fort Worth Int'l Airport Bd. v. Vizant Tech., Llc, 576 S.W.3d 362 (Tex. 2019). · cites it 2× “" TEX. LOC. GOV'T CODE § 271.153. Subsection (a)(1) expressly includes certain consequential damages within its reference to the balance due and owed: "any amount owed as compensation for the increased cost to perform the work as a direct result of owner-caused delays or…”
City of San Antonio v. Hays St. Bridge Restoration Grp., 551 S.W.3d 755 (Tex. App. 2017). · cites it 5× “See TEX. LOC. GOV'T CODE ANN. § 271.153 ; Zachry , 449 S.”
Sharyland Water Supply Corp. v. City of Alton, 354 S.W.3d 407 (Tex. 2011). “Laws 4006 , 4007 (codified at Tex. Loc. Gov't Code § 271.153(a)(3)). Those amendments are inapplicable here.”
Harris Cnty. Flood Control Dist. v. Great Am. Ins. Co., 309 S.W.3d 614 (Tex. App. 2010). · cites it 2× “Tex. Loc. Gov't Code Ann. § 271.153 (Vernon Supp.”
Boyer, Inc. v. Trinity River Auth. of Texas, 279 S.W.3d 354 (Tex. App. 2009). “See Tex. Loc. Gov't Code Ann. § 271.153 (a)(1), (b)(1).”
West Travis Cnty. Pub. Util. Agency v. Travis Cnty. Mun. Util. Dist. No. 12, 537 S.W.3d 549 (Tex. App. 2017). “See Tex. Loc. Gov't Code § 271.153(a) (permitting damages limited to "the balance due arid owed,” other amounts owed for change orders, “reasonable and necessary attorney’s fees that are equitable and just,” and "interest as allowed by law”); cf.”
City of Tyler v. Owens, 564 S.W.3d 38 (Tex. App. 2017). “3d at 305 ; see also TEX. LOC. GOV'T CODE ANN. § 271.153(a)(1) (West 2016) (limiting damages to balance due and owed by City).”
City of Houston v. Christopher A. Rhule, 377 S.W.3d 734 (Tex. App. 2012). “Tex. Loc. Gov't Code Ann. § 271.153 (West Supp.”
Clear Lake City Water Auth. v. MCR Corp. (Tex. App. 2010). · cites it 3× “066 (failing to impose any objective limitation on the State's potential liability), with Tex. Loc. Gov't Code Ann. § 271.153 (Vernon 2005) (imposing objective limits on recovery under section 271.”
Kansas City S. & the Texas Mexican Ry. Co. v. Port of Corpus Christi Auth. of Nueces Cnty., Texas (Tex. App. 2009). · cites it 3× “(b) Damages awarded in an adjudication brought against a local governmental entity arising under a contract subject to this subchapter may not include: (1) consequential damages, except as expressly allowed under Subsection (a)(1); (2) exemplary damages; or (3) damages for…”
City of San Antonio, Acting by & Through the San Antonio Water Sys. v. Lower Colorado River Auth. Rebecca A. Klein Michael G. McHenry Linda C. Raun Tom Martine Steve K. Balas Lori A. Berger Ida A. Carter John C. Dickerson, III Vernon E. Buddy Schrader W.F. Woody McCasland Franklin Scott Spears, Jr. (Tex. App. 2011). · cites it 2× “Tex. Loc. Gov't Code § 271.153. LCRA asserts that SAWS is not seeking a "balance due and owed" as permitted by subsection (a)(1), but rather is seeking "consequential damages" as prohibited by subsection (b)(1).”
Beaumont Indep. Sch. Dist. v. LRG-Loss Recovery Grp. LLC & Randall Harris (Tex. App. 2023). “See Tex. Loc. Govt. Code Ann. § 271.153 (b)(1).”
Show all 16 citing cases →
— Tex. Loc. Gov't Code § 271.153(a) — 2 cases
City of San Antonio v. Hays St. Bridge Restoration Grp., 551 S.W.3d 755 (Tex. App. 2017). “See TEX. LOC. GOV'T CODE ANN. § 271.153 ; Zachry , 449 S.”
West Travis Cnty. Pub. Util. Agency v. Travis Cnty. Mun. Util. Dist. No. 12, 537 S.W.3d 549 (Tex. App. 2017). “See Tex. Loc. Gov't Code § 271.153(a) (permitting damages limited to "the balance due arid owed,” other amounts owed for change orders, “reasonable and necessary attorney’s fees that are equitable and just,” and "interest as allowed by law”); cf.”
— Tex. Loc. Gov't Code § 271.153(a)(1) — 4 cases
dallas/fort Worth Int'l Airport Bd. v. Vizant Tech., Llc, 576 S.W.3d 362 (Tex. 2019). “" TEX. LOC. GOV'T CODE § 271.153. Subsection (a)(1) expressly includes certain consequential damages within its reference to the balance due and owed: "any amount owed as compensation for the increased cost to perform the work as a direct result of owner-caused delays or…”
City of Tyler v. Owens, 564 S.W.3d 38 (Tex. App. 2017). “3d at 305 ; see also TEX. LOC. GOV'T CODE ANN. § 271.153(a)(1) (West 2016) (limiting damages to balance due and owed by City).”
Texas Ass'n of Sch. Boards Risk Mgmt. Fund // Sw. Texas Junior Coll. v. Sw. Texas Junior Coll. // Cross-Appellee, Texas Ass'n of Sch. Boards Risk Mgmt. Fund (Tex. App. 2025).
Clear Lake City Water Auth. v. MCR Corp. (Tex. App. 2010). “066 (failing to impose any objective limitation on the State's potential liability), with Tex. Loc. Gov't Code Ann. § 271.153 (Vernon 2005) (imposing objective limits on recovery under section 271.”
— Tex. Loc. Gov't Code § 271.153(a)(3) — 1 case
Sharyland Water Supply Corp. v. City of Alton, 354 S.W.3d 407 (Tex. 2011). “Laws 4006 , 4007 (codified at Tex. Loc. Gov't Code § 271.153(a)(3)). Those amendments are inapplicable here.”
— Tex. Loc. Gov't Code § 271.153(c) — 1 case
City of San Antonio v. Hays St. Bridge Restoration Grp., 551 S.W.3d 755 (Tex. App. 2017). “See TEX. LOC. GOV'T CODE ANN. § 271.153 ; Zachry , 449 S.”
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