The opinion
%BE ATTOHNEY GENERAL
OF T-EXAS
Hon. Larry 0. Cox
Executive Director
Board for Texas State
Hospitals and Special Schools
Austin, Texas Opinion No. v-1462
Re: Necessity for advance ap-
proval by the Board of
Control on monthly con-
struction estlmates and
change orders on hospital
Dear Sir: construction projects.
You have requested an opinion on the fol-
lowing questions:
"Does the law require the approval of
the Board of Control on our monthly construc-
tion estimates?
"Does the law require the approval of
the Board of Control on our change orders
in plans and specifications after a contract
has been entered Into?
"If o’ur Board follows the customary
practice of the Board of Control and adver-
tises for bids In newspapers In the local
vicinity of the construction project as
well as advertising In construction trade
journals and publications, and bids are
publicly opened at a designated time and
place, and the low bid Is accepted by our
Board, does the Board of Control have the
legal authority to disapprove our action,
or:
"Is the Board of Control's right of
review and approval only that of assuring
that legal and businesslike methods are
followed In advertising and accepting bids
for construction?"
Hon. Larry 0. Cox, page 2 (v-1462)
Prior to the creation of the Board for Texas
State Hospitals and Special Schools, the Board of Con-
trol had authority to exec~ute and supervise construc-
tion contracts for the various institutions now under
the management and control of the Hospital Board. Arts.
679-687, V.C.S. On September 1, 1949, these powers were
transferred to the Board for Texas State Hospitals and
Special Schools. H.B. 1, Acts 51st Leg., R.S. 1949,
588 (Art. 3174b, V.C.S.); Att'y Gen. Op. V-
;;; ?$49p: In 1950 the Legislature amended the 1949
act to make such construction subject to the review and
approval of the Board of Control, where the construction
costs are paid out of funds credited to the State Hospitals
and Special Schools Building Fund. :H~.B. 2, Acts 5lst
Leg., 1stC.S. 1950, ch. 1, p. 1 (Sec. 3, Art. 7047c-1,
Section 3 of Article 7047c-1, V.C.S., provides
"All the funds credited to the State Hos-
pitals and Special Schools Building Fund under
this Act are hereby appropriated to the Board
for Texas State Hospitals and Special Schools
for the purpose of constructing, repairing and
equipping such buildings as in the opinion of
the Board are necessary to the proper care of
those committed or to be committed to such
hospitals and special schools according to
law. Provided however, the fees paid to an
architect shall not exceed six per cent (6%)
for the plans. specifications and supervi-
sions of-said-buildings and all contracts
made for and the final acceptance in connec-
tion with such construction other than the
plans and specifications, shall be subject
to the review and approval of the Board of
Control." (Emphasis added.)
It is noted that the above quoted provision
makes not only the contract but also the final accept-
ance of the construction work itself subject,,to "the
review and approval of the Board of Control. However,
plans and specifications are specifically excepted
from its provision. Att'y Gen. Op. V-1172 (1951).
In view of the foregoing, we answer your
specific questions as follows:
1. Since the final acceptance of the con-
struction work is subject to the approval of the Board
Hon. Larry 0. Cox, page 3 (v-1462)
of Control, it has the power to Inspect the work as it
progresses. Generally, construction contracts call for
monthly payments to the contractor based on the amount
of work completed, Therefore, the contractor's monthly
construction estimat'e 1~ssubj,ect $0 the approval of
the Board of Control.
2. Changes in plans and specifications are not
s'ubject to the approval of the Board of Control. Of cZi?se
it is understood that material changes in the plans and
specifications after a contract has been entered Into are
not authorized; only minor changes, contemplated by the
advertisement, bid, and contract, may be made.
3. Although the contract is subject to the
approval of the Board of Control, a legal basis must
exist before it may disapprove the action of the Hos-
pital Board in awarding the contract. For example, If
the Board of Control has knowledge of facts which show
that the person who has been awarded a contract is not
a responsible bidder, then it has the power to refuse
to approve the contract.
4. Both the contract and construction work are
subject to the review and approval of the Board of Control.
SUMMARY
All contracts for the construction of
buildings for the various institutions under
the management and control of the Board for
Texas State Hospitals and Special Schools,
and the construction work itself, are subject
to review and approval of the State Board of
Control. Art. 7047c-1, V.C.S. Plans and
specifications for such construction are not
subject to review and approval of the State
Board of Control. Att'y Gen. Op. V-1172 (1951).
Yours very truly,
APPROVED: PRICE DANIEL
Attorney General
J. C. Davis, Jr.
County Affairs Division
Mary K. Wall BY &&
Reviewing Assistant fi John Reeves
Assistant
Charles D. Mathews
First Assistant
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