Texas 2015 - 84th Regular

Texas House Bill HB3939 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	84R16169 T
2	2	By: Workman H.B. No. 3939
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	Relating to the requirements for construction contracts for certain
8	8	public works projects.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 2252.032, Government Code, is amended to
11	11	read as follows: Sec. 2252.032. RETAINAGE (a) A governmental entity
12	12	shall:
13	13	(1) deposit in an interest-bearing account the
14	14	retainage of a public works contract that provides for retainage of
15	15	a portion [more than five percent] of the periodic contract
16	16	payment; and
17	17	(2) pay the interest earned on the retainage to the
18	18	prime contractor on completion of the contract.
19	19	(b) A governmental entity may not:
20	20	(1) withhold retainage in excess of five percent of
21	21	the agreed contract price without the express written consent of
22	22	all parties to the contract;
23	23	(2) withhold retainage in excess of one percent of the
24	24	agreed contract price, excluding interest earned on the retainage,
25	25	if the public work covered by the contract is capable of being used
26	26	for the intended purpose of the public work; and
27	27	(3) items constituting additional withholding or
28	28	retainage added to the schedule of values, general contract
29	29	conditions, are prohibited.
30	30	(d) Withholding retainage for non-allocated project funds,
31	31	or during the warranty period is prohibited.
32	32	SECTION 2. Section 203.0941(a), Transportation Code, is
33	33	amended to read as follows:
34	34	(a) The relocation of a utility facility required by
35	35	improvement of any segment of the state highway system, for which a
36	36	political subdivision receives financial assistance made available
37	37	from either Subchapter D, F, G, or K, Chapter 17, Water Code, is not
38	38	subject to the requirements of Sections 17.183(a)(1)-(5)
39	39	[17.183(1)-(6)], Water Code, if the political subdivision has
40	40	agreed to allow the department to contract for the construction of
41	41	the utility facility relocation.
42	42	SECTION 3. Section 17.183, Water Code, is amended by
43	43	amending Subsections (a) and (c) and adding Subsections (a-1) and
44	44	(f) to read as follows:
45	45	(a) The governing body of each political subdivision
46	46	receiving financial assistance from the board shall require in all
47	47	contracts for the construction of a project:
48	48	(1) that each bidder furnish a bid guarantee
49	49	equivalent to five percent of the bid price;
50	50	(2) that each contractor awarded a construction
51	51	contract furnish performance and payment bonds;
52	52	(A) the performance bond shall include without
53	53	limitation guarantees that work done under the contract will be
54	54	completed and performed according to approved plans and
55	55	specifications[ and in accordance with sound construction
56	56	principles and practices; and]
57	57	(B) the performance and payment bonds shall be in
58	58	a penal sum of not less than 100 percent of the contract price[ and
59	59	remain in effect for one year beyond the date of approval by the
60	60	engineer of the political subdivision];
61	61	(3) that payment be made in partial payments as the
62	62	work progresses;
63	63	(4) that each partial payment shall not exceed 95
64	64	percent of the amount due at the time of the payment as shown by the
65	65	engineer of the project, but, if the project is substantially
66	66	complete or is capable of being used for its intended purpose;
67	67	(A) the political subdivision may not withhold
68	68	retainage in excess of one percent of the agreed contract price,
69	69	excluding interest earned on the retainage, [partial] and partial
70	70	release of [the five percent] the remaining retainage [may] shall
71	71	be made by the political subdivision [with approval of the
72	72	executive administrator];
73	73	(5) that payment of the retainage remaining due upon
74	74	completion of the contract shall be made only after:
75	75	(A) approval by the engineer for the political
76	76	subdivision as required under the bond proceedings;
77	77	(B) approval by the governing body of the
78	78	political subdivision by a resolution or other formal action; and
79	79	(C) certification by the engineer for the project
80	80	[executive administrator in accordance with the rules of the board]
81	81	that the work to be done under the contract has been completed[and
82	82	performed in a satisfactory manner and]in accordance with approved
83	83	plans and specifications and in accordance with the rules of the
84	84	board;
85	85	(6) [that no valid approval may be granted unless the
86	86	work done under the contract has been completed and performed in a
87	87	satisfactory manner according to approved plans and
88	88	specifications;
89	89	(7) that, if a political subdivision receives
90	90	[receiving] financial assistance under Subchapter K [of this
91	91	chapter], labor from inside the political subdivision be used to
92	92	the extent possible;
93	93	SECTION 4. The changes in law made by this Act apply only to
94	94	a contract entered into on or after the effective date of this Act.
95	95	A contract entered into before the effective date of this Act is
96	96	governed by the law in effect when the contract was entered into,
97	97	and the former law is continued in effect for that purpose.
98	98	SECTION 5. EFFECTIVE DATE. This Act takes effect
99	99	immediately if it receives a vote of two-thirds of all the members
100	100	elected to each house, as provided by Section 39, Article III, Texas
101	101	Constitution. If this Act does not receive the vote necessary for
102	102	immediate effect, this Act takes effect September 1, 2015.