Texas Administrative Code
Title 10 - COMMUNITY DEVELOPMENT
Part 1 - TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS
Chapter 1 - ADMINISTRATION
Subchapter D - UNIFORM GUIDANCE FOR RECIPIENTS OF FEDERAL AND STATE FUNDS
Section 1.405 - Bonding Requirements
Universal Citation: 10 TX Admin Code ยง 1.405
Current through Reg. 49, No. 38; September 20, 2024
(a) The requirements described in this subsection relate to construction or facility improvements in DOE WAP, HOME, HOME-ARP, CDBG, NSP, HHSP, EH Fund, TCAP-RF, and ESG Subrecipients, or other fund source required by state or federal law or regulation to have bonding for construction or facility improvements.
(1) For construction contracts exceeding
$100,000, the Subrecipient must request and receive Department approval of the
bonding policy and requirements of the Subrecipient to ensure that the
Department is adequately protected.
(2) For construction contracts in excess of
$100,000, and for which the Department has not made a determination that the
Department's interest is adequately protected, a "bid guarantee" from each
bidder equivalent to 5% of the bid price shall be requested. The "bid
guarantee" shall consist of a firm commitment such as a bid bond, certified
check, or other negotiable instrument accompanying a bid as assurance that upon
acceptance of the bid, the bidder will execute such contractual documents as
may be required within the time specified. A bid bond in the form of any of the
documents described in this paragraph may be accepted as a "bid guarantee."
(A) A performance bond on the part of the
Subrecipient for 100% of the contract price. A "performance bond" is one
executed in connection with a contract, to secure fulfillment of all
obligations under such contract.
(B) A payment bond on the part of the
subcontractor/vendor for 100% of the contract price. A "payment bond" is one
executed in connection with a contract to assure payment as required by statute
of all persons supplying labor and material in the execution of the work
provided for in the contract.
(C)
Where bonds are required, in the situations described herein, the bonds shall
be obtained from companies holding certificates of authority as acceptable
sureties pursuant to 31 CFR Part 223, "Surety Companies Doing Business with the
United States."
(b) A unit of government must comply with the bond requirements contained in Texas statutes, including but not limited to Tex. Gov't Code ch. 2253 and Tex. Local Gov't Code §252.044, §262.032, or §392.0525, as applicable.
Disclaimer: These regulations may not be the most recent version. Texas may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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