§ 24-105-301 — Contract clauses and their administration

(1) The executive
director may promulgate rules requiring the inclusion in state construction
contracts of clauses providing for adjustments in prices, time of performance, and
other appropriate contract provisions affected by and covering the following
subjects:

(a) The unilateral right of the state to order in writing changes in the work
within the scope of the contract and changes in the time of performance of the
contract that do not alter the scope of the contract work;

(b) Variations occurring between estimated quantities of work on a contract
and actual quantities;

(c) Suspension of work ordered by the state; and

(d) Site conditions differing from those indicated in the contract or ordinarily
encountered; except that differing site condition clauses required by the rules need
not be included in a contract when the contract is negotiated or when the
contractor provides the site or design.

(2) (a) Adjustments in price shall be computed in one or more of the following
ways:

(I) By agreement on a fixed price adjustment before commencement of the
pertinent performance or as soon thereafter as practicable;

(II) By unit prices specified in the contract or subsequently agreed upon;

(III) By the costs attributable to the events or situations under such clauses
with adjustment of profit or fee, all as specified in the contract or subsequently
agreed upon;

(IV) In such other manner as the contracting parties may mutually agree; or

(V) In the absence of agreement by the parties, by a unilateral determination
by the state of the costs attributable to the events or situations under such clauses
with adjustment of profit or fee, all as computed by the state pursuant to the
applicable sections of any rules issued under section 24-106-108, and subject to the
provisions of article 109 of this title 24.

(b) A contractor shall be required to submit cost or pricing data if any
adjustment in contract price is subject to the provisions of section 24-103-403.

(3) The executive director shall promulgate rules requiring the inclusion in
state construction contracts of clauses providing for appropriate remedies and
covering the following subjects:

(a) Liquidated damages as appropriate;

(b) Specified excuses for delay or nonperformance;

(c) Termination of the contract for default; and

(d) Termination of the contract in whole or in part for the convenience of the
state.

(4) The contract clauses promulgated under this section may be set forth in
rules; except that such rules shall be consistent with section 24-91-103.5 (1) and (2)
and section 24-30-1303 (1)(s)(IV).

Legislative History

Source: L. 81: Entire article added, p. 1274, � 1, effective January 1, 1982. L. 89: (4) amended, p. 1143, � 3, effective April 10. L. 2017: IP(1), (2)(a)(V), and (4) amended, (HB 17-1051), ch. 99, p. 330, � 35, effective August 9.