THEATTORNEYGENERAL 

OF TEXAS 

AUSTIN m.TExas 

February 12, 1963 

Hon. H. R. Nieman, Jr. Opinion No. C- 14 

Executive Director 

State Building Commission Re: Construction of contract 

Austin, Texas between the State Building 

Commission and Floyd R. 

Dear Mr. Nieman: Palmer Landscape Company. 

You have requested an opinion from this office concerning construction to be given certain.provislons contained 

in a contract entered into between the State Building Commission 

and the Floyd R. Palmer Landscape Company. 

In October, 1962, the State Building Commission advertised for bids covering certain landscaping around the Sam 

Houston State Office Building, and copies of the specifications 

and plans were issued as official documents for bid purposes. 

The specifications and plans for the landscaping around the Sam 

Houston State Office Building were ultimately made a part of the 

contract entered into between the State Building Commission and 

the Floyd R. Palmer Landscape Company. 

The specifications for the landscaping around the Sam 

Houston State Office Building, Project No. 6104, set forth a bid 

proposal form to be submitted by each bidder which is set forth 

in part as follows: 

"The undersigned, in compliance with your 

Invitation and Instructions to Bidders, for bids 

for 'Landscape and Area Development. about the Sam 

Houston State Office Building,' Austin, Texas, and 

having examined the Plans, Specifications and all 

related documents as prepared by the State Building 

Commisslon, as well as the site of the proposed 

project, including the availability of materials 

and labor, hereby proposes to furnish all material, 

labor, tools, equipment and necessary incidentals 

to complete all work as set forth in the Contract 

Documents, in accordance therewith, in the time set 

forth herein, and at the prices stated below which 

include all expenses and allowances. 

"BASE PROPOSAL: Shall include all labor and 

materials, as stated above, to complete all work 

-56- 
HOG. H. R. Nleman, Jr., Page 2 (C- 14 ) 

indicated and specified for the sum of: 

II . 

Dollars($ 1 

"UNIT PRICES: In accordance with the specifications covering unit prices, the undersigned 

agrees to the following prices, in place: 

"A) Sidewalks, pebble finish concrete: 

($ 1 

per square foot. 

"B) Top so11 fill: 

per cubic yard 

($ 1 

"C) Hand excavation of planting beds, dirt: 

($ 1 

per cubic yard 

"D) Granite Benches: 

(8 ) 

per bench installed 

The specifications for Project No. 6104 further provide 

that: 

"DEFINITION OF UNIT PRICES: 

1) It is understood and agreed that the Unit Price 

amounts shown on the proposal are the total amounts 

per unit to be added or deducted from the contract 

price in base there is a discrepancy or variation 

in the quantities as originally intended by Contract Documents to that actually installed in accordance with the original intention. 

2) It is further understood and agreed that extra 

work ordered by the owner and covered by the unit 

prices shall be the total amount per unit to be 

added to the contract price for said extra work. 

-57- 
Ron. H. R. Nieman, Jr., Pages 3 (C- 14 ) 

3) It is further understood and agreed that work 

ordered abandoned by then Cwner, after the contract is executed, and covered by the unit prices 

shall be amount per unit, to be deducted from 

the Contract price for such deletion of work." 

On November 5, 1962,,the bids on Project No. 6104 

were opened and the contract awarded to F~loyd R. Palmer Landscape Company on the basis of a Base Proposal of $16,161.11. 

The other Base Proposals ,bid b other bidders were in amounts 

of $23,049.35, $17,445.19 and 4 19,769.00. The Unit Prices set 

forth in the bid proposal by the Floyd R. Palmer Landscape Company were $.65 per square,foot ~for'sidewalks, $3.00 per cubic 

yard for top soil fill $5.00 per c,ubic yard for hand excavation 

of planting beds, and $450.00,per granite bench installed. 

On the 19th day of November, 1962, a contract was executed by the State Building Commission and the Floyd R. Palmer 

Landscape Company which provides in part that: 

I, . . .the Contractor hereby agrees with the 

Owner to commence and complete the construction 

of certain public works described as Landscape 

and Area Development About the Sam Houston State 

Office Building. . .as shown on the plans, as 

described in the specifications, the contract 

documents, all addenda thereto, the proposal for 

construction including the acceptance of the base 

proposal, together with the Contractor's proposal 

for deduction changes or deletions, hereinafter 

called the project, for the sum of SIXTEEN THOUSAND 

ONE HUNDRED SIXTY-ONE AND ll/lOO DOLLARS ($16,161.11) 

. . .The following unit prices shall be used in 

computing additions and deductions to be made in 

the Contract, if required, where depths and/or 

quantities may vary from the plans: 

1. Sidewalks, pebble finish concrete- $.65 

per square foot 

2. Top soil fill- per cubic yard 3.00 

3. Hand excavation of planting beds 

dirt per cubic yard 5.00 

4. Granite Benches per bench installecl " 450.00" 

(Emphasis added) ,~ 
. . 

Mr. H. R. Nieman, page 4 (C- 14 ) 

the State 

The Floyd R. Palmer Landscape Company has now informed 

Building Commission that they will lose money on the 

completion of Project No. 6104 for the reason that they interpreted the Unit Prices contained in the bid proposal and the 

contract to be the amount they would receive over and above 

the Base Proposal for performing the work specified In connection with the Unit Price items. 

A careful study of the specifications for Project No. 

6104 discloses that the definition of Unit Prices sets forth 

that: 

.the Unit Price amounts shown on the 

proposil'are the total amounts per unit to be 

added or deducted from the contract price in 

case there is a discrepancy or variation in the 

quantities as originaliy intended by Contract 

Documents to that actually Installed in accordance with the original intention." 

Also, it will be noted that in the contract entered into between 

The State Building Commission and the Floyd R. Palmer Landscape 

Company there is found the provision that: 

I, 

. . .the following unit prices shall be 

and deductions to 

tion 

sion 

Consequently, we are of the opinion that the consideraset forth in the contract between the State Building Commis- 

@the Floyd R. Palmer Landscape Company, in the amount of 

$16,161.11, is the total consideration to be received by the 

Floyd R. Palmer Landscape Compan for completion of its contract 

obligation under Project No, 610z. 

$16,161.11 may only be varied, 

THIS contract price of 

insofar as the Unit Price items 

are concerned, to the extent that If the State Building Commlssion should desire to enlarge or reduce the amount or quantity 

of work to be done on those items covered by the Unit Price that 

such Unit Prices would be used in adjusting, either up or down, 

the contract price. 

SUMMARY 

The contract price of $16,161.11, as set forth 

in the contract between the State Building Commission 

-59- 
Hon. H. R. Nieman, page 5 (C- 14 1 

and the Floyd R. Palmer Landscape Company pertaining 

to Project No. 6104, is the total consideration to be 

paid Floyd R. Palmer Construction Company for completion of its contract obligations, and such contract price may only be varied, Insofar as Unit Price 

items are concerned, to the extent that if the State 

Building Commission should desire to enlarge or reduce 

the work to be done on those items covered by the Unit 

Price that such Unit Prices would be used in adjusting, 

either up or down, the consideration set forth in the 

contract. 

Yours very truly, 

WAGGONER CARR 

Attorney General 

PB:wb:mkh 

APPROVED: 

OPINION COMMITTEE 

W. V. Geppert, Chairman 

Frank Booth 

John Reeves 

Joe R. Long 

Scott Garrison 

APPROVED FOR THE ATTORNEY GENERAL 

BY: Stanton Stone 

-60..