3Award and Execution of Contract

1.1 Award . The Commission or original award authority will award the Contract to the low Bidder as determined

in accordance with Article 2.11., “Tabulating Bids.” The Commission may award a Contract to the second lowest Bidder when the following requirements have been met:  the Contract is for maintenance work with a bid amount less than $300,000, and the Contract does not include federal funds,  the low Bidder withdraws their bid or fails to enter into Contract,  the second lowest Bidder agrees to perform the work at the unit bid prices of the low Bidder,  the Executive Director recommends in writing the award of the Contract to the second lowest Bidder, and  the Commission agrees with the Executive Director’s recommendation for award to the second lowest Bidder.

1.2 Rejection . The Commission or original award authority will reject the Contract if:

 collusion may have existed among the Bidders. Collusion participants will not be allowed to bid future proposals for the same Contract,  the low bid is mathematically and materially unbalanced. The Bidder will not be allowed to bid future proposals for the same Contract,  the lowest bid is higher than the Department’s estimate, and re- advertising for bids may result in a lower bid,  the low bid contains a bid error that satisfies the requirements and criteria in Article 2.12., “Consideration of Bid Errors,” or  rejection of the Contract is in the best interest of the State.

1.3 Deferral . The Commission may defer the award or rejection of the Contract when deferral is in the best

interest of the State.

4.1 Contract . Execute the Contract as prescribed by the Department.

4.2 Bonds . Exe cute and date the performance and payment bond in the full amount of the Contract with the

powers of attorney. Provide bonds in accordance with Table 1. Furnish the payment and performance bonds as a guaranty for the protection of the claimants and the Department for labor and materials and the faithful performance of the work. Table 1 Bonding Requirements Contract Amount Required Bonds Less than $25,000 None $25,000 –$100,000 Payment More than $100,000 Performance and payment Sample versions of the standard performance and payment bonds may be viewed on the Department’s websit e.

4.3 Insurance. For construction and building Contracts, submit a certificate of insurance showing coverages in accordance with the Contract requirements. For routine maintenance Contracts, refer to Article 3.8. ,

“Beginning of Work.” Insurances must cover the work for the duration of the Contract and must remain in effect until final acceptance. Provide project -specific insurance, not listed in Table 2, until acceptance of the work covered by the project -specific insurance or as approved by the Engineer. Failure to obtain and maintain insurance for the contracted work may result in suspension of work or default of the Contract. If the insurance expires and coverage lapses for any reason, stop all work until the Department receives an acceptable certificate of insurance. Provide the Department with a certificate of insurance verifying the types and amounts of coverage shown in Table 2. The certificate of insurance must be in a form approved by the Texas Department of Insurance. Certificates of insurance for commercial general liability, auto liability, and workers’ compensation must include the Contractor’s prequalified name in the “Insured” field. Any certificate of insurance provided must be available for public inspection. Table 2 Insurance Requirements Type of Insurance Amount of Coverage Commercial general liability insurance Not less than: $600,000 each occurrence Business automobile policy Not less than: $600,000 combined single limit Workers’ compensation Not less than: Statutory All risk builder’s risk insurance (for building -facilities contracts only) 100% of Contract p rice By signing the Contract, the Contractor certifies compliance with all applicable laws, rules, and regulations pertaining to workers’ compensation insurance. This certification includes all subcontractors. Pay all deductibles stated in the policy. Subcontractors must meet the requirements shown in Table 2, either through their own coverage or through the Contractor’s coverage. The workers’ compensation policy must include a waiver of subrogation endorsement in favor of the Department. 25 For building- facilities contracts, provide all risk b uilder ’s risk i nsurance to protect the Department against loss by storm, fire, or extended coverage perils on work and materials intended for use on the project , including the adjacent structure. Name the Department under the Lost Payable clause. For contracts with railroad requirements, see project -specific details for additional insurance requirements. Provide a substitute Surety on the Contract bonds in the original full Contract amount within 15 days of notification if the Surety is declared bankrupt or insolvent, the Surety’s underwriting limitation drops below the Contract amount or the Surety’s right to do business is terminated by the State. The substitute Surety must be authorized by the laws of the State and acceptable to the Department. Work will be suspended until a substitute Surety is provided. Working day charges will be suspended for 15 days or until an acceptable Surety is provided, whichever is sooner. The work performed under this S ection will not be measured or paid for directly , but will be subsidiary to pertinent Items.

4.4 Business Ownership Information. Submit the names and S ocial Security numbers of all individuals owning

25% or more of the firm, or firms in the case of a joint venture, on the Department’s form.

4.5 Railroad Documents . Provide all required documents for satisfaction of railroad requirements for projects

that have work involv ing railroad right of way. Comply with the requirements of Article 5.8., “Cooperation with Railroads.”