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