Purchasing Laws

Purchasing Laws


State law requires that public entities: 

  •  Engage in competitive bidding based on purchase amount required by law
  •   Have specific legal authority to make the purchase (cannot spend unless budgeted)
  •   Meet the requirements of specialized purchasing statutes (cannot pay if the purchase was not according to law) 
  •  Meet certain budget & finance restrictions (County Auditor must verify availability of funds via a requisition with a pre-encumbered number for the purchase or contract to be enforceable) 

It is the policy of Kendall County to comply fully in all aspects with these laws as they are amended from time to time. The provisions contained herein are not intended to be all inclusive. Rather, it is intended to set forth policies and procedures relating to the most frequently discussed topics. Numerous statutes exist that mandate additional requirements and procedures. 

A. Laws Governing Purchasing


The Basic Purchasing Law is Texas Local Government Code Chapter 262, The County Purchasing Act, which sets out procurement requirements for counties and provides a general legal and procedural framework that emphasizes price, openness, control, and accountability. Counties must also comply with a host of other procurement and financial requirements, including federal procurement requirements which flow through to states and localities receiving federal funds (grants).

Some laws, in addition to the County Purchasing Act, that may govern or impact purchasing in given circumstances include but are not limited to the following:

  •  Disclosure of Certain Relationships with Local Government Officers, Chapter 176 of the Texas Local Government Code; 
  • Competitive Bidding on Certain Public Works Contracts, Subchapter B of Chapter 271 of the Texas Local Government Code;
  •  Cooperative Purchasing Program, Subchapter F of Chapter 271 of the Texas Local Government Code; • Interlocal Cooperation Act, Chapter 791 of the Texas Government Code;
  •  Payment for goods and Services (commonly known as the Prompt Payment Act), Chapter 2251 of the Texas Government Code; 
  • Disclosure of Interested Parties, §2252.908 of the Texas Government Code; • Public Works Performance and Payment Bonds, Chapter 2253 of the Texas Government Code 
  • Professional Services Procurement Act, Subchapter A of Chapter 2254 of the Texas Government Code 
  • Prevailing Wage Rates for Construction of Public Works, Chapter 2258 of the Texas Government Code; • Contracting and Delivery Procedures for Construction Projects, Chapter 2269 of the Texas Government Code