1. (a) Contract execution.

   1. (1) Except as provided in paragraph (2) of this subsection and subparagraph (C) of this paragraph, within 15 days after written notification of award of a contract, the successful bidder must execute and furnish to the department the contract with:

      1. (A) a performance bond and a payment bond, if required and as required by the Government Code, Chapter 2253, with powers of attorneys attached, each in the full amount of the contract price, executed by a surety company or surety companies authorized to execute surety bonds under and in accordance with state law; and
      2. (B) a certificate of insurance showing coverages in accordance with contract requirements.
      3. (C) Exception. A successful bidder on a routine maintenance contract will be required to provide the certificate of insurance prior to the date the contractor begins work as specified in the department's order to begin work.
   2. (2) Within 15 days after award of the contract the successful bidder on a construction contract containing a DBE or HUB goal who is not a DBE or HUB must submit all the information required by the department relating to the DBE or HUB participation to be used to achieve the contract's DBE or HUB goal. The successful bidder must comply with paragraph (1)(A) and (B) of this subsection within 15 days after written notification of acceptance by the department of the successful bidder's documentation to achieve the DBE or HUB goal.
2. (b) Unbalanced bids. The department will examine the unit bid prices of the apparent low bid for reasonable conformance with the department's estimated prices. The department will evaluate a bid with extreme variations from the department's estimate, or where obvious unbalancing of unit prices has occurred.

3. (c) Proposal guaranty.

   1. (1) Apparent low bidder. The department will retain the proposal guaranty of the successful bidder until after the contract has been awarded, executed, and bonded. If the successful bidder does not comply with subsection (a) of this section, the proposal guaranty will become the property of the state, not as a penalty but as liquidated damages; provided, however, the department may, based on documentation submitted by the contractor, grant a 15-day extension to comply with the requirements under subsection (a)(2) of this section. A bidder who forfeits a proposal guaranty will not be considered in future proposals for the same work unless there has been a substantial change in the design of the project subsequent to the forfeiture of the proposal guaranty.
   2. (2) Other bidders. Not later than 72 hours after bids are opened, the department will mail the proposal guaranty of all bidders except the apparent low bidder to the address specified on each bidder's return bidder's check form included in the proposal.

Source Note:The provisions of this §9.18 adopted to be effective November 23, 1994, 19 TexReg 8867; amended to be effective May 25, 1995, 20 TexReg 3574; amended to be effective January 13, 1997, 22 TexReg 63.