The department may use design-build contracts for highway projects, but with limits on what the contract can give a private entity and how many/what size projects it may cover.
Sec. 223.242. SCOPE OF AND LIMITATIONS ON CONTRACTS. (a) Notwithstanding the requirements of Subchapter A and Chapter 2254, Government Code, the department may use the design-build method for the design, construction, expansion, extension, related capital maintenance, rehabilitation, alteration, or repair of a highway project. (b) A design-build contract under this subchapter may not grant to a private entity: (1) a leasehold interest in the highway project; or (2) the right to operate or retain revenue from the operation of a toll project. (b-1) A design-build contract under this subchapter may include a maintenance agreement requiring a design-build contractor to maintain a project for an initial term of not longer than five years. The maintenance agreement may authorize the department, in its sole discretion, to exercise options extending the term of the maintenance agreement for additional periods beyond the initial maintenance term with each additional period being not longer than five years. The department shall obtain pricing for the maintenance work for each maintenance term. The department may require separate pricing for the maintenance work to be performed for each year of a maintenance term. (c) In using the design-build method and in entering into a contract for the services of a design-build contractor, the department and the design-build contractor shall follow the procedures and requirements of this subchapter. (d) The department may enter into a design-build contract for a highway project with a construction cost estimate of $150 million or more to the department. (d-1) The department may not enter into more than six contracts under this section in each state fiscal biennium. (e) Money disbursed by the department to pay engineering costs for the design of a project incurred by the design-build contractor under a design-build contract may not be included in the amounts under Section 223.041: (1) required to be spent in a state fiscal biennium for engineering-related services; or (2) appropriated in Strategy A.1.1, Plan/Design/Manage or Strategy A.1.2, Contracted Planning and Design of the General Appropriations Act. (f) The department shall not use the design-build method for the construction, expansion, extension, rehabilitation, alteration, or repair of a highway project if the project is substantially designed, to the extent described by Section 223.246(a)(5), by the department or another entity other than the design-build contractor. (g) The department shall not include more than one highway project in a design-build contract. Added by Acts 2011, 82nd Leg., R.S., Ch. 1345 (S.B. 1420), Sec. 34, eff. September 1, 2011. Amended by: Acts 2015, 84th Leg., R.S., Ch. 314 (H.B. 20), Sec. 7, eff. June 3, 2015. Acts 2019, 86th Leg., R.S., Ch. 859 (H.B. 2830), Sec. 1, eff. September 1, 2019.