How to sell to Texas counties

Texas has 254 counties, more than any other state. Texas has no county home-rule charters, so one set of state laws governs county buying. The County Purchasing Act (Local Government Code chapter 262) covers goods and services. Local Government Code chapter 271 and Government Code chapters 2251 to 2269 cover construction, bonds, wages, payment and professional services. Many small counties don't use an online bid platform, so bids may appear only in the local newspaper, on the county website or on the commissioners court agenda.

At a glance

Who buys

Each county is governed by a commissioners court: the county judge plus four commissioners, one per precinct. The court approves purchases, exemptions and sole-source buys. A county purchasing agent, with the commissioners court, adopts purchasing procedures (Local Government Code chapter 262; V.G. Young Institute).

Larger counties have a purchasing department. In smaller counties, bids are often handled by the county judge's office, the county auditor or the road and bridge department.

Goods and services

SB 1173 raised the threshold from $50,000 to $100,000 effective Sept. 1, 2025. Purchases split up to avoid the threshold are counted as one purchase (Local Government Code 262.023(c)).

Counties may also use competitive sealed proposals. Proposals are scored on criteria the RFP lists, and the award goes to the responsible offeror whose negotiated offer ranks best under them (Local Government Code chapter 262, subchapter C; V.G. Young Institute).

The law has exceptions, such as emergencies and sole-source items.

Construction and public works

Threshold. Construction, repair and renovation contracts above $100,000 must be competitively bid under Local Government Code chapter 271, subchapter B. SB 1173 raised this from $50,000 effective Sept. 1, 2025 (Local Government Code 271.024; Collin County memo).

Roads. A county may negotiate road purchases up to $100,000 without advertising if the county road engineer recommends it and the commissioners court finds it in the county's best interest (Transportation Code 252.312(b), as amended by SB 1173).

Delivery methods. Government Code chapter 2269 allows construction manager-at-risk, design-build, job order contracting and other methods (V.G. Young Institute).

Bid security. A county may require a bid bond of 5% of the total contract price on public works or contracts over $100,000 (Local Government Code 262.032(a)).

Bonds. On public work contracts, a performance bond is required over $100,000 and a payment bond over $25,000. Each is 100% of the contract amount (Government Code 2253.021). Under the Purchasing Act, a county may also require a 100% performance bond; the text we reviewed sets that at contracts over $50,000 (Local Government Code 262.032(b)).

Retainage. See Getting paid below.

Notice and award

Goods and services. Notice runs in a newspaper once a week for 2 consecutive weeks. The first notice must run at least 14 days before bid opening. It must list the county website if the county has one. With no qualifying newspaper, the notice is posted at the courthouse for 14 days (Local Government Code 262.025).

Construction. Notice runs at least twice in a newspaper. The second notice must run at least 10 days before the first day bids may be submitted. Notice is also mailed to plan rooms that ask for it (Local Government Code 271.025).

Award. The contract goes to the responsible bidder with the "lowest and best bid," or all bids are rejected. Before awarding to someone other than the lowest bidder, the county must give the lower bidders notice and a hearing (Local Government Code 262.027). See lowest responsible bidder.

Prevailing wage

Texas has a state prevailing wage law that covers counties. Workers on a public work for a political subdivision must be paid at least the prevailing wage. There is no dollar threshold, and maintenance work is excluded (Government Code 2258.021). The county sets the rate by its own survey or by adopting Davis-Bacon rates, and the rate must appear in the bid call and the contract (Government Code 2258.022).

Getting paid

Prompt payment. Counties are covered by the Prompt Payment Act. A payment is overdue on the 31st day after the latest of: goods received, service completed or invoice received. If the commissioners court meets once a month or less often, it is the 46th day (Government Code 2251.021). Late payments earn interest at the prime rate plus 1% (Government Code 2251.025). See prompt payment.

Retainage. Retainage is capped at 10% on contracts under $5 million and 5% on contracts of $5 million or more. Primes can't withhold more from subcontractors. Retainage can't be held after the work is complete, except in a bona fide dispute (Government Code 2252.032).

Cooperative purchasing and state contracts

A county may join cooperative purchasing programs with local governments in Texas or other states. A purchase through one satisfies competitive bidding laws (Local Government Code 271.102). Purchases from federal GSA schedules are also treated as meeting bidding laws, and reverse auctions are allowed (V.G. Young Institute).

Preferences and required certifications

• Local preference. A county may award to a local bidder within 3% of the lowest nonresident bid if it finds in writing that the local bid gives the best mix of price and economic development (Local Government Code 271.905).
• Israel boycott verification. Required on contracts of $100,000 or more with companies of 10 or more full-time employees (Government Code 2271.002). Similar verifications for firearm entities (chapter 2274) and energy companies (chapter 2276) use the same thresholds; whether they cover counties is not confirmed, so check the solicitation.
• Form 1295. The Certificate of Interested Parties is filed with the Texas Ethics Commission for contracts that need a commissioners court vote (Government Code 2252.908).
• Conflict of Interest Questionnaire. Required if you have a disclosable relationship with a county officer (Local Government Code 176.006).
• HUB certification. The Texas Comptroller certifies HUBs. We found no county HUB-quote rule.

E-Verify, Iran and terrorist-organization certifications and veteran preferences were not confirmed for counties; check the solicitation.

Architects and engineers

Texas has a mini-Brooks Act. Counties select architects, engineers and land surveyors on demonstrated competence and qualifications, then negotiate a fair price with the top-ranked firm. Bidding these services on price is prohibited (Government Code 2254.004). See qualifications-based selection.

Recent changes

• Sept. 1, 2025: SB 1173 raised the county bid threshold for purchases and construction from $50,000 to $100,000 and raised the negotiated road purchase limit to $100,000 (SB 1173 bill analysis; Texas Association of Counties).
• 2025: SB 1062 lets public notices run in a qualified digital newspaper (Collin County memo). The effective date is not confirmed.

Practical tips for Texas

• Watch for more informal buying. With the $100,000 threshold, more purchases now go through county quote policies, so get on vendor lists.
• Watch newspapers and court agendas. In many rural counties, they are the only places bids appear.
• Prepare Form 1295 early. Contract signing waits for it.
• Check Texas counties for each county's bid platform, contacts and agendas.