Texas Senate Bill SB1416

Texas 2017 - 85th Regular

Caption

Relating to the requirements for construction contracts for certain water supply projects, treatment works, and flood control measures.

Impact

One of the essential features of SB1416 is its provision that promotes the use of local labor and mandates that iron and steel products used in the projects be domestically produced. The rationale is to bolster the local economy and support domestic manufacturing, particularly relevant for construction that often uses significant amounts of materials like steel. It aims to ensure that local contractors can tap into these projects and potentially stimulate job creation within the local community.

Summary

SB1416 aims to amend the Water Code by detailing requirements for construction contracts involving water supply projects, treatment works, and flood control measures. The bill emphasizes the necessity of ensuring that contractors submit proper bid guarantees and establish solid performance and payment bonds that ensure the completion of high-quality work. Specifically, it mandates that these bonds be valued at 100% of the contract price and remain effective for a year after project approval. This change is meant to safeguard public funds and ensure project reliability and accountability.

Contention

Despite some support, the bill may face contention regarding its domestic production requirement. The stipulations that allow waivers necessitate that exceptions be justified based on availability, cost, or quality of materials sourced outside the U.S. Critics may argue that this could hinder the completion of projects due to potential supply chain issues, especially in the context of fluctuating market conditions where materials may not always be available stateside at a competitive price. Opponents of the bill could also see these requirements as an undue burden on contractors who might be pressed to meet compliance under tight deadlines.

Notable_points

The bill specifies that contracts governed under this newly amended section apply only to those initiated after its effective date, ensuring that pre-existing contracts maintain their original legal stipulations. This aspect reflects an intentional consideration of lawmakers to avoid retroactive application of newly established procedures, which could complicate ongoing projects and contractual obligations.