An applicant shall obtain executive administrator approval of contract documents, including engineering plans and specifications, prior to receiving bids and awarding the contract. The applicant shall submit three copies of contract documents; which shall be as detailed as would be required for submission to contractors bidding on the work, and which shall be consistent with the engineering feasibility data submitted with the application. The contract documents must contain the following:

1. (1) provisions assuring compliance with the board's rules and all relevant statutes;
2. (2) forms by which the performance and payment bonds will be provided;
3. (3) provisions requiring the contractor to obtain and maintain the appropriate insurance coverage;
4. (4) provisions providing for the applicant to retain a minimum of 5.0% of the progress payments otherwise due to the contractor until the building of the project is substantially complete and a reduction in the retainage is authorized by the executive administrator;
5. (5) a contractor's act of assurance form to be executed by the contractor which shall warrant compliance by the contractor with all laws of the State of Texas and all rules and published policies of the board;
6. (6) provisions giving authorized representatives of the board access to all such construction activities, books, records, documents and other evidence of the contractor for the purpose of inspection, audit and copying during normal business hours; and
7. (7) any additional conditions that may be requested by the executive administrator.

Source Note:The provisions of this §375.61 adopted to be effective February 11, 1999, 24 TexReg 769.