8.3 Section 3: Award Contract
Construction contracts let by the State require award by the Commission before execution of the contract. CST makes a contract award recommendation to the Commission after all bids are tabulated and reviewed, and after all letting and procedural requirements are checked.
- For Federal-aid projects, FHWA concurrence in award is a prerequisite to Federal participation. Concurrence will be given only after receipt and review of the tabulated bids.
- Concurrence from a Metropolitan Planning Organization (MPO) must be obtained for cost overruns on projects selected by the MPO in compliance with the MPO’s policy.
- If an LG is involved in funding a portion of a project, their concurrence is also required if the project overruns the cost estimate.
- For federally funded projects let by LGs, concurrence in award must be obtained from TxDOT Assistant Executive Director for Engineering Operations before the LG awards the project. Contact the Transportation Programs Division (TPD) - Local Government Projects section for additional information.
- A cost justification memorandum is required for all projects when either of the following occurs:
- Multiple bidders and the low bid deviation is ±20% or more from the estimate; or
- One bidder and the low bid deviation is ±10% or more from the estimate.
Justification memoranda are prepared and explained by the District. The districts submits the memo to the CST Director for approval. The memo information is used to explain the bid deviation to the Commission. The Commission officially accepts or rejects bids at their monthly meetings. CST notifies successful bidders of the contract award.
The contractor must obtain the Notice to Proceed from the State before construction activities may begin on a project. Upon contract award, DES-FPP will build the contract set and load Site Manager with project details.
Refer to TxDOT’s
for more discussion letting overrun/underrun justifications.