(a) Contract execution.
(1) Except as provided in paragraphs (2) and (3) of
this subsection, within 15 days after the bidder receives written
notification of the award of a contract, the bidder must execute and
furnish to the department the contract with:
(A) a performance bond and a payment bond, if required
and as required by Government Code, Chapter 2253, with powers of attorneys
attached, each in the full amount of the contract price except as
provided by subsection (c) of this section, executed by a surety company
or surety companies authorized to execute surety bonds under and in
accordance with state law. Department interpretations made in accordance
with §9.16(b)(2) of this subchapter (relating to Tabulation of
Bids) will be used to determine the contract amount for providing
a performance bond and payment bond, if required, and as required
by the Government Code, Chapter 2253;
(B) a certificate of insurance showing coverages in
accordance with contract requirements; and
(C) when required, written evidence of current good
standing from the Comptroller of Public Accounts.
(2) A bidder awarded a maintenance contract, materials
contract, or building contract will be required to provide the certificate
of insurance prior to the date the contractor begins work as specified
in the department's order to begin work.
(3) The bidder selected for the award of a contract
containing a DBE or SBE goal, who is not a DBE or SBE, must submit
all the information required by the department in accordance with §9.227
of this chapter (relating to Information from Bidders) within the
period described by §9.17(i) of this subchapter (relating to
Award of Contract) for a contract containing a DBE goal, or §9.319
of this chapter (relating to Contractor's Commitment Agreement) and §9.320
of this chapter (relating to Contractor's Good Faith Efforts) within
the period specified in the contract for a contract containing a SBE
goal. The bidder must comply with paragraph (1) of this subsection
within 15 days after written notification of acceptance by the department
of the bidder's documentation to achieve the DBE or SBE goal.
(b) Bid guaranty. The department will retain the bid
guaranty of the bidder awarded a contract until after the contract
has been executed and bonded. If the bidder selected for the award
of a contract with a DBE goal fails to submit the DBE information
required by §9.227 of this chapter (related to Information from
Bidders) within the period described by §9.17(i) of this subchapter
or if the bidder awarded a contract does not comply with subsection
(a) of this section, the bid guaranty will become the property of
the state, not as a penalty but as liquidated damages. A bidder who
forfeits a bid guaranty will not be considered in future bids for
the same work unless there has been a substantial change in the design
of the project subsequent to the forfeiture of the bid guaranty.
(c) Performance or payment bonds for maintenance contracts.
For maintenance contracts the department may require that a performance
or payment bond:
(1) be in an amount equal to the greatest annual amount
to be paid under the contract and remain in effect for one year from
the date work is resumed after any default by the contractor; or
(2) be in an amount equal to the amount to be paid
the contractor during the term of the bond and be for a term of two
years, renewable biannually in two-year increments.
(d) Performance or payment bonds for materials contracts.
A performance or payment bond is not required for a materials contract.
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Source Note: The provisions of this §9.18 adopted to be effective November 23, 1994, 19 TexReg 8867; amended to be effective May 25, 1995, 20 TexReg 3574; amended to be effective January 13, 1997, 22 TexReg 63; amended to be effective December 12, 1999, 24 TexReg 10901; amended to be effective January 4, 2001, 25 TexReg 13007; amended to be effective July 18, 2002, 27 TexReg 6345; amended to be effective January 8, 2004, 29 TexReg 229; amended to be effective December 8, 2005, 30 TexReg 8181; amended to be effective December 11, 2008, 33 TexReg 10054; amended to be effective January 4, 2017, 41 TexReg10663;amended to be effective April 20, 2023, 48 TexReg 1968; amended to be effective May 15, 2024, 49 TexReg 3373 |