OFFICE OF TNE ATYORNEY GENERAL OF TEXAS 

AUSTIN 

honorable D. C. Greer 

State Highway Engineer 

Austin, Texaco 

Deer Sir: 

We aokuowlebgs 

31, 1941, In whlah you 

prrtnsnt upon the 

tion of the project ana requested the !1ig,;;S*~ 

Depeirtment to assume the coqlatlon In any minner 

it saw fit, as Is orovlded by the oontraot sgeclflcations. Luring the conference, the Aondlng 

Company repreeentatlve bequested that he be DEr- 
Honorable b. C. Grew, Page 2 

Bitted to seoure lnfomal bl&dr fr o m l number 

of ooatrdotor8 theretofore appmrd by the Iii&away Dspartasnt for the oompfetloa of the proJeot, wlth the understandlog that the Xlghwy 

Departoent would enter lnto agreement with the 

lowest blddrr for the oompletlorr of the proJsot 

as orlglnally planned. Under thlr plan, the 

contrsotor, whose bid may be seleoted for the 

oomplrtlon at the projsot, would furnish bond 

ln the amount of hie bid. 

a . 

. . . 

Proolalon tar the submlsrlon to oompetltlve bids 

of all oontraotr proposed to bA mado by the 6tate Riqhway 

Cepartaent 1s nade in hrtiole 6674h, Vernonca Revisad Civil 

statutes of Texas. Artlole 68743, red&s as tollorsi 

*The suooessful bldler or bidders shall 

enter Into writton oontrsota wltb eald depart- 

. msnt, and shall 

!I 

lV3 bond la such amount as la 

now provided b;t ax, oonditlonsd tor the. falthful oozplisnoe with hle bid and performnor of 

the contract and payable to the State alghway 

Departiant for the use and benefit ot the State 

IiIghra;r Fund.’ 

Item 8.7 of tine oontraot apsolfleatlons provldee 

trat in the event ot abanSonnent of work or default of the 

2ontraot by the oontraotor thrt the State Highway Departsent 

6%~ ta’re over ths proseoutlon of work, appropriate or use any 

or all material and equipmant on the ground as msy be sultable, and enter lnto an agrsersnt for the oorrlJ~etion of the 

contract aocordlng to the terra sad wovlslons thereof or 

usa such other .methods as In the oglnlon of the Sn+ne& may 

be required for the oou@etion of the contract In aoce?tabls 

smnner. 

Analysis of the lnatsnt situation reveals that ths 

contra& ~$8 orIglnsllp let end entered into Un.ter tk8 authority of and In oompllscce with the ap?licsble stiitutory I)?( 

rLsions, bond in the mount of tks contract being furnlshs3 

bJ the &erican &main3 Company. Althou:L the contrsctor 

haa a~faulted the State Is P~lly proteoted by the ‘bon3 and 
F!imorablO D. C. Grwr, Paqe 3 

thare 1s ao ooaaaIon for the suboIsslon OS aoapetltlve bide 

as rsqulred under hrtlale 6674h, supra, bsfore arrangersnts 

are entared Into for the ooapletlon of the projeot. The 

Hlqhnejy Department Is authorlted by ftem 6;7 05 the oontraot 

opcolf~catlans to assuas comoletlon o? the oontraot In whatever mnnsr is oaosptsble un3rr the oxlstlng olrowastanoes. 

No contrary provlsloa a?psars in the statutes and no method 

of procedure Is Were eug;Jeete& Artlala 66?4h hsvlng already been oola?lIed with end the ssftguards provided in that 

and the suoceedlng artloles having already been brought lnto 

exlstenoe them would appear to be no neceesIty for the resubnleelon of oompetltIvs bids. 

It la, therefore, the opinion of this departmnt 

that the Highway Department may legally aocspt lnforaal bids 

taken from qusllfled and apCuW@d oontreotora by the bondlnz ooznpany wlthout advertising for such bids as provided 

by Artlole 667411 and enter Into agreeaent with the low bidder 

ror tha cowletlon of the Lea1 contraot. We note that this 

procedure was requested and lnstlqsted by tS% bonding congany, 

and ve sqgest that the racpeat bs redwed ta wrltlng, and 

tlaf all subsequent tranerotlons be refleot%d by urltten Instrum9nts. The apglIoatIon of tbls oglnlon, of course, 1s 

llnlted to the s~eolflo faot elt~atlon presented In your lettsr. 

foure very truly 

. .-.m - 

ATTOXNZY ,GEIlEtAL 02’ TE;%AS 

, RC:Lx’