Montana Code Annotated 2015

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     18-4-224. Contract clauses -- rules. (1) The department may, in its discretion, permit or require the inclusion of clauses providing for adjustments in prices, time of performance, or other appropriate contract provisions relating to the following subjects:
     (a) the unilateral right of the state to order in writing:
     (i) changes in the work within the scope of the contract; and
     (ii) temporary work stoppage or delay of performance; and
     (b) variations occurring between estimated quantities of work in a contract and actual quantities.
     (2) Adjustments in price pursuant to clauses established under subsection (1) must be computed in one or more of the following ways:
     (a) by agreement on a fixed price adjustment before commencement of the pertinent performance or as soon after commencement of performance as practicable;
     (b) by unit prices specified in the contract or subsequently agreed upon;
     (c) by the costs attributable to the events or situations under clauses established under subsection (1) with adjustment of profit or fee, all as specified in the contract or subsequently agreed upon; or
     (d) in any other manner as the contracting parties may mutually agree.
     (3) The department may, in its discretion, permit or require the inclusion in state contracts of clauses providing for appropriate remedies and relating to 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 director or the head of a purchasing agency may vary the clauses established by the department under subsections (1) and (3) for inclusion in any particular state contract. Any variations must be supported by a written determination that states the circumstances justifying the variation. Notice of any material variation must be stated in the invitation for bids or request for proposals.
     (5) Regardless of a provision in a contract, the department may accept a lower price or better value offered by a contractor.

     History: En. Sec. 32, Ch. 519, L. 1983; amd. Sec. 8, Ch. 443, L. 1997.

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