Tex.
Transp. Code Section 223.250
Performance or Payment Bond
(a)
The department 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 shall be in an amount equal to the cost of constructing or maintaining the project.(c)
If the department determines that it is impracticable for a private entity to provide security in the amount described by Subsection (b), the department 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)
The department 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 department;(2)
a United States bond or note;(3)
an irrevocable bank letter of credit provided by a bank meeting the requirements specified in the request for proposals; or(4)
any other form of security determined suitable by the department.(f)
Section 223.006 (Contractor’s Bond) of this code and Chapter 2253 (Public Work Performance and Payment Bonds), Government Code, do not apply to a bond or alternative form of security required under this section.
Source:
Section 223.250 — Performance or Payment Bond, https://statutes.capitol.texas.gov/Docs/TN/htm/TN.223.htm#223.250 (accessed Jun. 5, 2024).
