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COMMON MISTAKES IN PUBLIC PROCUREMENT

"An Overview of Texas Law Relating to Municipal Construction Project Procurement"

16th Annual Construction Law Conference

March 6 & 7, 2003

Dallas, Texas

Scott N. Houston

Legal Services Director
Texas Municipal League
Austin, Texas




Table of Contents

  1. Author's Bio
  2. Preliminary Matters
    1. About the Texas Municipal League
    2. Introduction
  3. Traditional Procurement (Design-Bid-Build)
    1. Introduction
    2. Texas Local Government Code Chapter 252
      1. Competitive Bidding
      2. Exemptions
      3. Change Orders
      4. Local Preference
      5. Historically Underutilized Businesses
      6. Penalties
  4. Alternative Procurement and Delivery Systems (S.B. 510)
    1. Introduction
    2. Preliminary Matters
    3. Competitive Bidding
    4. Competitive Sealed Proposals
    5. Design-Build Contracts
    6. Construction Manager
      1. CM Agent
      2. CM At-Risk
    7. Job Order Contracts
  5. Local Government Corporations
  6. Professional Services Procurement Act
    1. Engineering Practices Act
    2. Architect Act
  7. Financial Considerations
    1. Workers Compensation
    2. Payment and Performance Bonds
    3. Bond Rating
    4. Prompt Pay
    5. Prevailing Wage Rates
  8. Miscellaneous
    1. Architectural Barriers
    2. Electronic Bidding
    3. Reverse Auction
  9. Conclusion

Abstract

Texas cities are major participants in the procurement of public works projects. From streets to utilities to buildings, cities are always engaging in projects to serve the needs and wants of city residents. Over the years, the legislature has passed many laws, some beneficial and some not, that affect how cities go about procuring constructions services. The two main points that appear to be addressed by those who make the rules, both the federal and state legislative and administrative bodies, are the fear of corruption in the process and the unique ability to address either real or perceived social woes through the public procurement process. This paper is a very brief overview of the methods of, and restrictions on, city construction procurement in Texas.




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Last updated 4 February 2004