Texas Attorney General Opinion: MS-150 Page: 2 of 7
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Hon. D. C. Greer, page 2 (MS-150)
We are advised that the unit prices to be paid
to John T. Leslie under' the proposed contract
between the State and Leslie would be in excess
of the unit prices in the Stone Construction
Company's contracts. However, the Stone Construc-
tion Company's Surety agrees to assume and
pay to the State whatever loss would be thus
sustained by the State under the valid provi-
sions of its contracts with Stone Construction
Company.
"Under the above statement of facts and in
the light of Article 6674h, Texas Civil Statutes
and Item 8.7 of the General Provisions of the
Contract Specifications we would be pleased to
have you give us your opinion and adviod in re-
sponse to the following questions:
(1) Can the State legally enter into a
contract with John T. Leslie for the completion
of the Stone Construction Company's contracts
based upon the proposed contract to be submitted
by the Bonding Company without the State submit
ting such contracts to competitive bids?
"(2) If the first question is answered in
the affirmative, then is the State required, as
a matter of law, to enter into such a contract
with Leslie?
"() If the State does not enter into the
contract with Leslie as proposed by the Bonding
Company for completion of the Stone Construction
Company's contracts, is Stone Construction Com-
pany's Surety released from further liability to
the State under its bond or is such liability in
any manner reduced?
"(4) With or without the Bonding Company's
consent, could the State, without taking bids on
the incompleted work, enter into a contract with
a contractor who was willing and able to complete
aSuch defaulted contracts?
"(5) With the Bonding Company consenting to
the terms and conditions of the Stone Construction
Company contracts, especially Item 8.7 of the Gen-
eral Provisions of the Contract Specificatiaons,
can the Bonding Company exercise any control over
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Texas. Attorney-General's Office. Texas Attorney General Opinion: MS-150, text, August 31, 1954; (https://texashistory.unt.edu/ark:/67531/metapth276016/m1/2/: accessed August 15, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting UNT Libraries Government Documents Department.