(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.

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Terms Used In Texas Transportation Code 223.250

  • Contract: A legal written agreement that becomes binding when signed.
  • United States: includes a department, bureau, or other agency of the United States of America. See Texas Government Code 311.005

(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) § 223.006 of this code and Chapter 2253, Government Code, do not apply to a bond or alternative form of security required under this section.