Sec. 370.410. PERFORMANCE AND PAYMENT BOND. (a) An authority shall require a design-build contractor to provide:
(1) a performance and payment bond;
(2) an alternative form of security; or
(3) a combination of the forms of security described by Subdivisions (1) and (2).
(b) Except as provided by Subsection (c), a performance and payment bond, alternative form of security, or combination of the forms of security shall be in an amount equal to the cost of constructing or maintaining the project.
(c) If the authority determines that it is impracticable for a private entity to provide security in the amount described by Subsection (b), the authority shall set the amount of the security.
(d) A performance and payment bond is not required for the portion of a design-build contract under this section that includes design services only.
(e) An authority may require one or more of the following alternative forms of security:
(1) a cashier's check drawn on a financial entity specified by the authority;
(2) a United States bond or note;
(3) an irrevocable bank letter of credit drawn from a federal or Texas chartered bank; or
(4) any other form of security determined suitable by the authority.
(f) Chapter 2253, Government Code, does not apply to a bond or alternative form of security required under this section.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1345 (S.B. 1420), Sec. 38, eff. September 1, 2011.
Section: Previous 370.355 370.361 370.362 370.363 370.364 370.365 370.401 370.402 370.403 370.404 370.405 370.406 370.407 370.408 370.409Last modified: September 28, 2016