SB 338: UGCs for Texas Public Schools

The Texas Legislature’s recent amendments to the Education and Government Codes now allow school districts to incorporate Uniform General Conditions into Building Construction Contracts, and add two school-district-friendly members to the Texas Facilities Commission’s UGC Review Committee.

The Texas Government Code requires construction contracts for state buildings to incorporate uniform general conditions (UGCs) adopted by the Texas Facilities Commission (TFC). The UGCs are reviewed by a TFC-appointed committee (Committee) at least once every five years.

Effective June 7, 2021, Senate Bill 338 amends the Texas Education Code to now allow—but not require—school districts to adopt UGCs for incorporation into “all district building construction contracts.” The bill also amends the Texas Government Code to require the TFC to appoint two additional members to the Committee by December 1, 2021—one representing the Texas Association of School Boards, and the other representing the Texas Association of School Administrators.

If utilized by school districts, construction contracts would likely become more uniform across the state, and it would streamline the contract negotiations process. Contractors performing work for school districts should therefore familiarize themselves with the applicable UGCs. In addition, with the TFC’s appointment of two new members to the Committee, future versions of the UGCs may become more favorable to school districts.