Public Works Construction Contract Procedures

Construction is governed by:

• Texas Local Government Code
• Texas Administrative Code
• City Charter
• Texas Business and Commerce Code (Uniform Commercial Code)
• City Policies approved by City Council/City Manager
• Departmental Instructions issued by Director of Engineering Services

Engineering Services is responsible for all City construction contracts, including the preparation of bid/contract documents, development of plans and specifications, advertising, bid opening, construction administration and payments. Some departments assume a greater role in some aspects of construction projects due to specialized expertise or resource availability, i.e. Airport, Water, Wastewater. Construction contracts are reviewed by the Department of Risk Management and the City Attorney prior to award. Minor maintenance work or service calls are handled by individual departments and governed by Purchasing Department policies and procedures. Examples of minor maintenance work and service calls include such work as repairing a faucet, servicing an air conditioner, or repairing a door lock.

Construction projects require the contractor to provide all labor, equipment, and materials to complete an item of work. Major maintenance such as replacement of a plumbing system, installation of new electrical or computer conduit/conductors, replacement of an air conditioning system, and roof repair/replacement are also considered to be construction projects.

Construction contracts for more than $15,000 are governed by Chapter 252 of the Local Government Code for purposes of advertising, bidding, and award.

Small construction contracts of $15,000 or less are generally administered under City Policies, with the exception of federally-funded projects and HUB (Historically Underutilized Businesses) projects having statutory controls based on contract amount ($3,000 - $15,000).

Workers Compensation is a statutory requirement for all City construction contracts. General liability, auto liability, and employers liability certificate is required for all construction contracts by City policy .

Purchases up to $500:

Purchases are generally considered to be minor maintenance and are usually governed by Purchasing Department policies.

Contracts $500 to $2,999:

Three or more bids required.

Successful bidder must comply with wage rates and submit required insurance certificates prior to contract award.

Builders Risk and/or Installation Floater insurance coverage may be required based on the type of project when determined by the Director of Engineering Services, i.e. high risk sites (O. N. Stevens Water Treatment Plant).

Workers Compensation insurance or an approved written agreement with the Texas Workers Compensation Commission is required.

Bid, Performance and Payment bonds are not required.

Contracts $3,000 - $15,000:

Same requirements as for Contracts $500 - $2,999, except for the addition of HUB requirements. Chapter 252.0215, Local Government Code requires that the City contact at least two disadvantaged businesses (HUBs), if available, on a rotating basis based on information provided by the Office of Small Business Assistance of the Texas Department of Commerce.

Contracts Over $15,000:

The Local Government Code requires use of sealed competitive bidding requirement with notice of bid opening being advertised in a local newspaper published once a week for two consecutive weeks. The date of first publication must be before the 14th day before the date set to publicly open bids.

Bid Bond or cash surety equivalent to 5% of the total amount of the bid must accompany the bid. Successful bidder must comply with wage rates and submit required insurance certificates.

Bid documents will state if a payment and performance bond is required for bids less than $25,000.

The Local Government Code requires the contractor to submit a good and sufficient payment and surety bond for all contracts over $25,000 from a company authorized to do business in the State of Texas prior to contract award.

Plans, proposal forms, specifications and contract documents may be obtained from the Engineering Service Department on the third floor of City Hall. A fifty dollar ($50.00) deposit will be required as a guarantee of their return in good condition within two weeks of the bid date. Documents can be obtained by mail upon receipt of an additional ten dollars ($10.00) which is a non-refundable postage/handling charge.

Workers Compensation insurance, or an approved written agreement with the Texas Workers Compensation Commission is required.

Prior to award of contract and when determined by the Director of Engineering Services, Contractor may be required to submit documentation under Special Provisions A-28 Considerations for Contract Award and Execution , A-29 Contractors Field Administration Staff, and A-30 Amended A Consideration of Contract Award Requirements.

Additional Outreach: In addition to public advertisement, a list of bidders is generated from the Engineering Services bidders list database, based on the type and scope of work for the particular project, and NOTICE TO BIDDERS are sent to those bidders on that particular list, as well as to anyone requesting same. Distributions of plans/specifications are made to the Association of General Contractors (AGC), the Association of Building Contractors (ABC), Dodge Reports, and the Minority Business Opportunity Committee (MBOC). A checklist for insurance and bond requirements is also provided to contractors.