The board must use competitive bidding and public notice for certain district contracts, award covered contracts to the lowest responsible bidder, and follow limits on change orders and contract price adjustments.
Sec. 1010.114. MISCELLANEOUS CONTRACT REQUIREMENTS. (a) The board may not enter into a contract calling for or requiring the expenditure, payment, or creation or imposition of an obligation or liability of any nature on the district in excess of $5,000, unless the proposed contract is first submitted to competitive bids. (b) Notice of the time and place the contract will be awarded must be published once a week for two consecutive weeks in a newspaper of general circulation in the district. The first notice must be published not later than the 14th day before the date set for the receipt of bids. The notice must specify that the plans and specifications for the proposed project, or the specifications for the machinery, supplies, equipment, or materials to be purchased, are on file with a designated district representative for examination without charge. (c) A contract for construction or the purchase of materials, equipment, supplies, or machinery awarded under this chapter shall be awarded to the lowest responsible bidder and may be awarded on a lump-sum basis or on a unit price basis, as the board shall determine. (d) After performance of a construction contract has started, the board may approve change orders necessary to: (1) change the plans or specifications; or (2) decrease or increase: (A) the quantity of work to be performed; or (B) the materials, equipment, or supplies to be furnished. (e) The board may not increase the total contract price by a change order under Subsection (d) unless the board provides for the payment of the added cost by appropriating current or bond funds for that purpose, but the original contract price may not be increased by more than 25 percent. (f) The original contract price may not be decreased by more than 25 percent without the consent of the contractor. (g) The board may reject any bid. If a contract is for the construction of public works and requires the expenditure of $5,000 or more, a successful bidder is required to give a good and sufficient payment bond and performance bond. Each bond must: (1) be in the full amount of the contract price; and (2) be executed by a surety company authorized to do business in this state under Chapter 2253, Government Code. (h) This section does not apply to: (1) Section 1010.104(b), 1010.110, 1010.115, or 1010.117; (2) a contract for personal or professional services; or (3) the purchase of land, buildings, or rights-of-way. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.