Untitled Texas Attorney General Opinion

                                              GENE-I.


PRICE  DANIEL
ATTORNEYGENERAL

                                   April   27, 195X

          Hon. Larry 0. Cox
          $geoutiva Dlreator
          Board for Texas Stat,e Bospi-
            talsand  Special Schools
          Austin, Texas~
                                 0pinfon      Bo. v-IX&?
                                     Be:   LegaliIiy of then Bciard*s, pay-
                                           tng archfteetuxal   ,feeeesprkm
                                           to the exmmtfon of cchstruc-
                                           tiun cmt,racts;   neassstty   of
                                           approval of architectural
                                           ccxtracts  by the Board of Con-
                                           ixol.
          Dear Sir:
                      You have requested     the op,iuion cf this   office
          on the following   questions:
                      I. May the Board for Texas. State Hosgltals
          and Special Schools pay an arch&ted    a part of MS fers
          for preparing plans and.specffic&ions    far a building
          prior to the time it executers a contract for ccmstruc-
          tlon of the bunding,   out of its apprcpr%at~cm of $!?i,COaQ,-
          000 for the current biennium and&g August 3% lm         the
          appropriation  from which the cost of comstrm&.ng t&e
          building will be paid?
                     2. Must a~chftectural coufracts  entered f&to
          by the Board for Texas State Hosp%tals and Special schools
          be reviewed and approved by the Board. of ControlSI
                     The Legislature in 1969 created the Board for
          Texas State Hospitals and Spaatal Schools     hersia&fter
          referred to as the Board, and gresctihed   iEs p@eus and
          duties in K.B. 1, Acts, &t   Leg., R.S. 19k3, ch. 3x6,,   p.
          gsa (Art-~
                   3174b,V.C*S*)',
                                      Legfslature    a&s&d A??tMk ?@tik-
                                             the State tax an cigarettes
                                             2,,Acts   5lst Leg.% 1st C.S.
                                   Tie amendment creates the State Ha-
          pltais   and S,pecial   School~s Buildkg    Fuud and provfdestit
      hon. Larry O. Cox - Page 2       (V-1172 >


      a specified   portion of the net revenue derived from
      cigarette   taxes through August 31, 1957, shall be
      credited to this, fund the amount for the biennium
      ending August 31 19d not to exceed $5;000,000.
      Section 3 of Article    7d47c-1,as amended, further pro-
      vides:
                  “All 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 construc-
           ting, repairing     and equipping such build-
           ings as In the opinion of the Board are
     ,.    necessary to the proper care of those com-
           mitted or to be committed to such hospi;;is
           and special     schools according to law.         -
           vided however, the fees paid to an architect
           shall not exceed six per cent (6%) for the
           plans, specifications       and supervisions   of
           said buildings     and all contracts    made for
           and the final acceptance in connection with
           such construction      other than the plans and
           specifications,      shall be subject to the re-
           view and approval of the Board of Control.”
                  You have furnished us with a printed form of
      the contracts generally used by the Board in making con-
      tracts with architects       for professional   services,    which
      include the preparation        of plans and specifications     and
      preliminary    estimates of cost of the project         general
      administration     of the business      and supervislon    of the
      work.   A contract executed on {his form between the Board
      and an architect     obligates    the Board to pay to the archi-
      tect a fee based on the estimated cost of the project, de-
      scribed therein.      The “basic rate” of the fee Is fixed
      at five ‘per cents of the first       $200 000 of the cost of the
      project  and is thereafter       graduated downward on a fixed
      schedule as the cost of the project, increases.
,.               Article   4 of., the contract   provides,   in part:
                                .    Payments to the Architect
            on account of his fee shall be,made as follows;
            subject to the provisions     of Article 3 hereof:
                                   I
                  “Upon completion’and    approval by the Owner
            of preliminary  studies a. sum equal to twenty
Hon. Larry 0. cox - Page 3      (v-1172)


     per cent (20%) of the basic     rate computed
     upon a reasonable estimated     cost;
          **Uponcompletion and approval by the
     Owner ,of specifications   and general work-
     ing drawings a sum sufficient    to increase
     the payments to fifty    per cent (5%) of
     the basic rate based on a reasonable esti-
     mated cost;
           “Upon awarding, of contract or if no
     contract is awarded within ten (10) days.
     of opening of bids a sum sufficient    to in-
     crease the payments to sixty-five   (65%)
     per cent of the basic fee based on the low-
     est bona fide bid.
           ItIt is understood that the above-men-
     tioned estimated oost shall in no event ex-
     ceed the amount of the appropriation    (from
     whatever source) for the work.”
           We