Relating to the requirement for performance and payment bonds from certain contractors of the Parks and Wildlife Department.

Contracts

• Master Service Agreements (MSAs): Expect TPWD to amend standard MSAs to reference Section 11.0171(a-1). Legal counsel must review these to ensure bond forms match statutory requirements.
• Subcontracts: Downstream contracts must be updated to acknowledge the existence of the Payment Bond. Include indemnity clauses requiring subcontractors to release liens upon payment to protect your bond rating.

Hiring/Training

• Estimating Teams: Estimators must be retrained to include the premium costs for *both* Performance and Payment bonds in the base bid for any TPWD project over $150,000.
• Project Management: Operations Managers must be strictly instructed that site mobilization is legally prohibited until the legal department confirms the bonds have been executed and accepted by TPWD.

Reporting & Record-Keeping

• Solicitation Verification: You must document the date TPWD *first advertised* the solicitation. This date determines whether the new law applies (post-Sept 1) or if the project is grandfathered (pre-Sept 1).
• Bond Retention: Maintain certified copies of both bonds in the project file to address potential subcontractor claims.

Fees & Costs

• Surety Premiums: This is a direct cost increase. Do not absorb this; it must be built into your bid.
• Bonding Capacity: Verify your aggregate bonding capacity with your surety agent. Multiple concurrent TPWD projects may strain your limits if not adjusted.