Contracts Management Guide - Texas Comptroller of Public Accounts

Consideration/Price
Example 1 The contract price is $25,000. [Fixed price]
Example 2 The State shall pay the contractor at the rates set herein for labor and/or material,
not to exceed a maximum amount of $25,000. The contractor shall successfully
complete the services in accordance with contract requirements within the ceiling
price specified herein. [Time and material/labor hours]
Example 3 The State shall reimburse the contractor’s reasonable, allowable costs, as defined
herein, not to exceed $25,000. [Cost reimbursement]
Consideration should be stated as a definite amount at a certain rate with a total cost not to exceed.
Other Administrative Terms
Specifications
The services performed shall be in accordance with the purchase specifications herein. Agency name will
determine the answers to all questions that may arise as to the interpretation of the specifications and the
quality or acceptability of work performed. Agency name will decide the rate of progress of the work and
the acceptable fulfillment of the service on the part of the contractor.
Funding
This contract is subject to cancellation, without penalty, either in whole or in part, if funds are not
appropriated by the Texas Legislature.
Clause is essential when the contract term extends into the next biennium.
One possible approach:
Section [XX]: This Contract is subject to termination, either in whole or in part,
without penalty to [name of agency], subject to appropriation or availability of state
funds. The [name of agency] is a state agency whose authority and appropriations are
subject to actions of the Texas Legislature and whose availability of funds may be
subject to governmental action. If [name of agency] becomes subject to a legislative
change, revocation of statutory authority, lack of appropriated funds, or unavailability
of funds which would render contractor's delivery or performance under this Contract
impossible or unnecessary, this Contract will be terminated, either in whole or in part.
In the event of a termination under this Section, [name of agency] will not be liable to
contractor or any other person or entity for any payments, damages or any other
amounts which were otherwise due or which may be caused or associated with such
termination and [name of agency] will not be required to give prior notice.
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