18-4-224. Contract clauses -- rules. (1) The department may adopt rules permitting or requiring 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 thereafter 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 such clauses with adjustment of profit or fee, all as specified in the contract or subsequently agreed upon;
     (d) in such other manner as the contracting parties may mutually agree; or
     (e) 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 in accordance with applicable sections of the rules adopted under 18-4-225.
     (3) The department may adopt rules permitting or requiring 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 such variation. Notice of any material variation must be stated in the invitation for bids or request for proposals.

     History: En. Sec. 32, Ch. 519, L. 1983.