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eXpendit

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Contract Expenditures
Payments under Modified Contracts

A state agency may modify a contract but may not agree to make additional payments without receiving an added benefit in return. Also, additional funds for contractual performance already required by an existing contract may not be paid by a state agency.

Example:

A state agency may agree to modify a contract with a vendor if the agency needed to increase the number of units previously ordered. But the agency may only do so if an added benefit is provided to the agency (i.e., adding to the order might be less costly to the agency than creating an additional order to buy more units).

Sources [+]

Opinion of the Texas Attorney General No. GA-204 (2004), citing Rhoads Drilling Co. v. Allred, 123 Tex. 229, 70 S.W.2d 576 (1934).