Tex. Water Code Section 17.183
Construction Contract Requirements


(a)

The governing body of each political subdivision receiving financial assistance from the board shall require in all contracts for the construction of a project:

(1)

that each bidder furnish a bid guarantee equivalent to five percent of the bid price;

(2)

that each contractor awarded a construction contract furnish performance and payment bonds:

(A)

the performance bond shall include without limitation guarantees that work done under the contract will be completed and performed according to approved plans and specifications and in accordance with sound construction principles and practices; and

(B)

the performance and payment bonds shall be in a penal sum of not less than 100 percent of the contract price and remain in effect for one year beyond the date of approval by the engineer of the political subdivision;

(3)

that payment be made in partial payments as the work progresses;

(4)

that each partial payment shall not exceed 95 percent of the amount due at the time of the payment as shown by the engineer of the project, but, if the project is substantially complete, a partial release of the five percent retainage may be made by the political subdivision with approval of the executive administrator;

(5)

that payment of the retainage remaining due upon completion of the contract shall be made only after:

(A)

approval by the engineer for the political subdivision as required under the bond proceedings;

(B)

approval by the governing body of the political subdivision by a resolution or other formal action; and

(C)

certification by the executive administrator in accordance with the rules of the board that the work to be done under the contract has been completed and performed in a satisfactory manner and in accordance with approved plans and specifications;

(6)

that no valid approval may be granted unless the work done under the contract has been completed and performed in a satisfactory manner according to approved plans and specifications;

(7)

that, if a political subdivision receiving financial assistance under Subchapter K of this chapter, labor from inside the political subdivision be used to the extent possible; and

(8)

that the contract include a requirement that iron and steel products used in the project be produced in the United States, unless:

(A)

such products are not:
(i)
available in sufficient quantities;
(ii)
readily available; or
(iii)
of a satisfactory quality; or

(B)

the use of such products will increase the total cost of the project by more than 20 percent.

(b)

Plans and specifications submitted to the board in connection with an application for financial assistance must include a seal by a licensed engineer affirming that the plans and specifications are consistent with and conform to current industry design and construction standards.

(c)

For the purposes of Subsections (a)(8) and (d):

(1)

Repealed by Acts 2017, 85th Leg., R.S., Ch. 597 (S.B. 1289), Sec. 5, eff. September 1, 2017.

(2)

Repealed by Acts 2017, 85th Leg., R.S., Ch. 597 (S.B. 1289), Sec. 5, eff. September 1, 2017.

(3)

“Manufacturing process” means the application of a process to alter the form or function of materials or elements of a product in a manner that adds value and transforms the materials or elements so that a new end product is produced that is functionally different from the product that would result from simple assembly of the materials or elements.

(4)

“Produced in the United States” means, in the case of iron and steel products, products for which all manufacturing processes, from initial melting through application of coatings, take place in the United States, except metallurgical processes that involve the refinement of steel additives.

(d)

Repealed by Acts 2017, 85th Leg., R.S., Ch. 597 (S.B. 1289), Sec. 5, eff. September 1, 2017.

(e)

This section shall be applied in a manner consistent with this state’s obligations under any international agreement.
Amended by Acts 1987, 70th Leg., ch. 1103, Sec. 1, eff. Sept. 1, 1987; Acts 1989, 71st Leg., ch. 309, Sec. 2, eff. Sept. 1, 1989; Acts 1989, 71st Leg., ch. 624, Sec. 2.18; Acts 2003, 78th Leg., ch. 1057, Sec. 6, eff. June 20, 2003.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 207 (H.B. 4), Sec. 2.08, eff. September 1, 2013.
Acts 2013, 83rd Leg., R.S., Ch. 1139 (H.B. 3605), Sec. 3, eff. September 1, 2013.
Acts 2017, 85th Leg., R.S., Ch. 597 (S.B. 1289), Sec. 3, eff. September 1, 2017.
Acts 2017, 85th Leg., R.S., Ch. 597 (S.B. 1289), Sec. 4, eff. September 1, 2017.
Acts 2017, 85th Leg., R.S., Ch. 597 (S.B. 1289), Sec. 5, eff. September 1, 2017.

Source: Section 17.183 — Construction Contract Requirements, https://statutes.­capitol.­texas.­gov/Docs/WA/htm/WA.­17.­htm#17.­183 (accessed Mar. 23, 2024).

17.001
Definitions
17.002
Open Meetings and Open Records Laws
17.003
Bond Review
17.011
Issuance of Water Development Bonds
17.012
Description of Bonds
17.013
Sale Price of Bonds
17.014
Interest on Bonds
17.015
Form, Denomination, Place of Payment
17.016
Maturity of Bonds
17.017
Redemption Before Maturity
17.018
Registered and Bearer Bonds
17.019
Notice of Bond Sale
17.020
Competitive Bids
17.021
Security for Bids
17.022
Approval of Bonds
17.023
Execution of Bonds
17.024
Facsimile Signatures and Seals
17.025
Signature of Former Officer
17.026
Bonds Incontestable
17.027
Payment by Comptroller
17.028
Payment Enforceable by Mandamus
17.029
Refunding Bonds
17.030
Bonds Negotiable Instruments
17.031
Bonds Not Taxable
17.032
Authorized Investments
17.033
Security for Deposit of Funds
17.034
Mutilated, Lost, Destroyed Bonds
17.035
Subchapter Cumulative of Other Laws
17.071
Disposition of Money Received
17.072
Development Fund
17.073
Water Development and Economically Distressed Areas Clearance Funds
17.074
Interest and Sinking Fund
17.075
Administrative Fund
17.076
Combined Facilities Operation and Maintenance Fund
17.077
Credits to Clearance Funds
17.078
Transfers at End of Fiscal Year
17.079
Transfers to Interest and Sinking Fund
17.080
Additional Funds for Payment of Bonds
17.081
Transfers to Administrative Fund
17.082
Transfers to Development Fund
17.083
Investment of Reserve Money
17.084
Limitation on Board Investment
17.085
Sale of Securities
17.086
Transfers to Be Made by Comptroller
17.0111
Dedication of Certain Bonds
17.0112
Authorization of Certain Bonds for Financial Assistance
17.121
Financial Assistance
17.122
Application for Assistance
17.123
Findings Regarding Permits
17.124
Considerations in Passing on Applications
17.125
Approval of Application
17.127
Limitation on Use of Funds
17.128
Recreational Access
17.171
Definition
17.172
Applicability
17.173
Method of Financial Assistance
17.174
Conditional Approval
17.175
Bond Maturity
17.176
Interest Rate
17.177
Approval and Registration
17.178
Bonds Incontestable
17.179
Security for Bonds
17.181
Sale of Bonds by Board
17.182
Proceeds from Sale
17.183
Construction Contract Requirements
17.184
Filing Construction Contract
17.185
Inspection of Projects
17.186
Alteration of Plans
17.187
Certificate of Approval
17.188
Obtaining Financial Assistance
17.189
Considerations for Certain Financial Assistance
17.271
Purpose
17.272
Financial Assistance
17.273
Authority of Political Subdivision
17.274
Application for Assistance
17.275
Considerations in Passing on Application
17.276
Action on Application
17.277
Approval of Application
17.278
Findings Regarding Permits
17.279
Limitation on Use of Funds
17.0741
Economically Distressed Areas Interest and Sinking Fund
17.771
Purpose
17.772
Financial Assistance
17.773
Application for Assistance
17.774
Considerations in Passing on Application
17.775
Action on Application
17.776
Approval of Application
17.0791
Transfers to Economically Distressed Areas Interest and Sinking Fund
17.0821
Transfers to Revolving Funds
17.851
Purpose
17.852
Definitions
17.853
Texas Water Resources Fund
17.854
Methods of Financial Assistance
17.855
Financial Assistance by Acquisition of Acquired Obligations
17.856
Consideration in Passing on Application for Financial Assistance
17.857
Approval of Application
17.858
Acquisition of Acquired Obligations
17.859
Issuance of Revenue Bonds by the Board
17.0871
Sale of Political Subdivision Bonds to the Texas Water Resources Finance Authority
17.871
Definitions
17.872
Issuance of Bonds
17.873
Conditions for Issuance of Bonds
17.874
Periodic Determination of Interest
17.875
Persons Designated to Act as Agents of Board
17.876
Security Qualifications
17.877
Investment Securities
17.878
Form of Bonds
17.879
Funds
17.880
Sale of Securities
17.881
Sale of Obligations to Texas Water Resources Finance Authority
17.882
Resolutions, Orders, Etc
17.883
Bond Review Board
17.884
Approval of Attorney General
17.885
Bonds Incontestable
17.886
Payment and Transfers by Comptroller
17.887
Refunding Bonds
17.888
Mutilated, Lost, or Destroyed Bonds
17.889
Eligible Security
17.890
Legal Investments
17.891
Tax Exempt Bonds
17.892
Enforcement by Mandamus
17.893
Subchapter Cumulative of Other Laws
17.894
Bond Enhancement Agreements
17.895
Sources of Assets
17.896
Repayment Proceeds
17.897
Conservation Program
17.898
Conservation Project
17.899
Eligible Fund Uses
17.900
Grant to State Agency
17.901
Grant or Loan to Political Subdivision
17.902
Review of Application for and Approval of Grant
17.903
Contract Authority
17.904
Linked Deposit
17.905
Linked Deposit Program
17.906
Application by Eligible Lending Institutions to Participate in Linked Deposit Program
17.907
Approval or Rejection of Application
17.908
Deposit Agreement
17.909
Compliance
17.910
State Liability Prohibited
17.911
Limitations on Program
17.912
Rules
17.913
Grant Standards
17.921
Definitions
17.922
Financial Assistance
17.923
County Eligibility for Financial Assistance
17.927
Application for Financial Assistance
17.928
Findings Regarding Permits
17.929
Considerations in Passing on Application
17.930
Approval or Disapproval of Application
17.931
Application Amendment
17.932
Method of Financial Assistance
17.933
Terms of Financial Assistance
17.934
Sewer Connections
17.935
Grant Standards
17.936
Recovery of Economically Distressed Area Impact Fees
17.937
Reporting and Transparency Requirements
17.951
Definitions
17.952
Issuance of Water Financial Assistance Bonds
17.953
Conditions for Issuance of Water Financial Assistance Bonds
17.954
Bond Enhancement Agreements
17.955
Persons Designated to Act as Agents of Board
17.956
Texas Water Development Fund Ii
17.957
State Participation Account
17.958
Economically Distressed Areas Program Account
17.959
Financial Assistance Account
17.960
Bond Resolutions
17.961
Transfers to Revolving Funds
17.962
State Approvals
17.963
Payment of Board Obligations
17.964
Eligible Security
17.965
Legal Investments
17.966
Mutilated, Lost, or Destroyed Bonds
17.967
Refunding Bonds
17.968
Sale of Political Subdivision Bonds by the Board
17.969
Tax Exempt Bonds
17.970
Enforcement by Mandamus
17.971
Subchapter Cumulative of Other Laws
17.991
Definitions
17.992
Training for Applicants
17.993
Training for Operating Entities
17.994
Training Requirements
17.1245
Evaluation
17.1765
Certification of Application
17.9021
Application for and Approval of Loan
17.9022
Financing of Grant or Loan for Political Subdivision
17.9225
Residential Water and Sewer Connection Assistance
17.9226
Use of Certain General Obligation Bonds
17.9275
Prioritization of Projects by Board
17.9615
Transfers to Rural Water Assistance Fund
17.9616
Transfer to Water Infrastructure Fund
17.9617
Transfers to State Water Implementation Revenue Fund for Texas

Accessed:
Mar. 23, 2024

§ 17.183’s source at texas​.gov