In shortTexas sets its job order contracting rules in Government Code Chapter 2269, Subchapter I, sections 2269.401 through 2269.411. They cover where JOC can be used, how prices are set, how long a contract can run, and when the governing body must approve an order.[1]

About this walkthrough

Texas spells out job order contracting in its own short section of state law. If you work for a Texas city, county, school district, or state agency, or you bid on their work, these eleven sections set the ground rules. They live in Texas Government Code Chapter 2269, Subchapter I, sections 2269.401 through 2269.411. This page walks through them in plain English. It is not legal advice, so check the current statute and your own attorney before you rely on any of it.[1]

Who the law applies to

Chapter 2269 covers public work contracts made by Texas governmental entities. The chapter lists state agencies (including the Texas Facilities Commission), counties, municipalities, school districts, special districts such as hospital districts and water districts, other political subdivisions, and public junior colleges.[1]

How Texas defines job order contracting

Section 2269.401 defines job order contracting as a procurement method for maintenance, repair, alteration, renovation, remediation, or minor construction of a facility "when the work is of a recurring nature but the delivery times, type, and quantities of work required are indefinite." That is the same idea covered in our guide to what job order contracting is: one competitively awarded contract that handles a steady stream of smaller projects you cannot fully predict at the start.[1]

What job order contracting is

Buildings only, not civil work

Scope is the first thing to check. Section 2269.402 says the JOC subchapter applies only to a building whose design and construction is governed by building codes, or to a structure or land associated with a building.[1]

It does not apply to:

  • highways, roads, streets, and bridges
  • utilities, water supply projects, water plants, and wastewater plants
  • water and wastewater distribution or conveyance facilities
  • wharves, docks, and airport runways or taxiways
  • drainage projects and similar civil engineering construction
  • a building or structure that is only incidental to a project that is mainly civil engineering

The conditions for using it

Under section 2269.403, an entity may award job order contracts when two things are true: the work recurs but the delivery times are indefinite, and indefinite quantities and orders are awarded substantially on the basis of tasks that are described and priced in advance.[1]

Two more rules come with that section. The entity has to set the maximum aggregate contract price when it advertises. And the governing body (the council, commissioners court, or board) must approve each job, task, or purchase order over $500,000.

How prices are set

Section 2269.404 gives two ways to set contract unit prices:[1]

How unit price books work

What a JOC coefficient is

How the contract is procured and awarded

Section 2269.405 lets an entity use the competitive sealed proposal method from elsewhere in the chapter. The entity advertises for, receives, and publicly opens sealed proposals. It may also ask for more than rates, including experience, past performance, proposed personnel, and methodology. Our guide to evaluating a JOC solicitation covers how those pieces usually show up in a request for proposals.[1]

Section 2269.406 allows award to one or more job order contractors from each solicitation, so a single procurement can produce more than one contract.

Evaluating a JOC solicitation

Who else can use the contract

Section 2269.407 says a job order contract can be used only for the entity that awarded it, with two exceptions: the solicitation and the contract both specifically allow use by others, or the entity signs an interlocal agreement that provides otherwise.[1]

Architects and engineers

If a contract or an order needs work that counts as the practice of architecture or engineering under Texas licensing law, section 2269.408 requires the entity to select or designate an architect or engineer to prepare the construction documents. There is a narrow exception for industrialized housing, industrialized buildings, and relocatable educational facilities approved under Chapter 1202 of the Occupations Code, when the contractor uses an architect or engineer who approves the documents.[1]

How long a contract can run

Section 2269.409 caps the base term at two years. The entity may renew annually for up to three more years, so five years at most.[1]

What a job order looks like

Each order has to be signed by the entity's representative and the contractor, under section 2269.410. The order can be either a fixed price, lump-sum order based substantially on contract unit pricing applied to estimated quantities, or a unit price order based on the quantities and line items actually delivered. For the day-to-day steps, see our guide to how job orders work.[1]

How job orders work

Bonds

Section 2269.411 says the contractor provides payment and performance bonds, if required by law, based on the amount or estimated amount of each order. The thresholds that decide when bonds are required sit in a different chapter of the Government Code.[1]

Quick reference

[1]
Texas JOC rules by section
TopicSectionRule
Definition2269.401Recurring work, indefinite timing, type, and quantity
Scope2269.402Buildings and associated structures or land; no civil engineering projects
Price cap and approvals2269.403Max aggregate price set at advertising; governing body approves orders over $500,000
Pricing2269.404Unit price book line items, or work item list plus proposed coefficients
Procurement2269.405Competitive sealed proposals; may weigh experience, past performance, personnel, methodology
Award2269.406One or more contractors per solicitation
Other users2269.407Only if solicitation and contract allow it, or by interlocal agreement
Design professionals2269.408Architect or engineer prepares documents when licensed services are needed
Term2269.409Up to 2 years, plus up to 3 annual renewals
Orders2269.410Signed by both sides; lump sum or unit price
Bonds2269.411If required by law, based on each order's amount

Source: Texas Government Code, Chapter 2269, Subchapter I, sections 2269.401 to 2269.411, and section 2269.002 for which entities the chapter covers. Laws change, so confirm against the current text before you act on it.

Sources

  1. Texas Government Code, Chapter 2269, Subchapter I, "Job Order Contracts Method" (sections 2269.401 to 2269.411)
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