Senate Bill No. 427
(By Senator Craigo)
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[Introduced February 16, 1996; referred to the Committee
on Government Organization.]
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A BILL to amend article three, chapter five-a of the code of West
Virginia, one thousand nine hundred thirty-one, as amended, by
adding thereto a new section, designated section
thirty-seven-b, relating to prohibiting change orders in
excess of ten percent of the original successful contract bid
for certain state contracts.
Be it enacted by the Legislature of West Virginia:
That article three, chapter five-a of the code of West
Virginia, one thousand nine hundred thirty-one, as amended, be
amended by adding thereto a new section, designated section
thirty-seven-b, to read as follows:
ARTICLE 3. PURCHASING DIVISION.
§5A-3-37b. Change orders in excess of ten percent of original
contract prohibited.
(a) Notwithstanding any provision of this chapter to the
contrary, and subject to the exceptions set forth in subsections (b) and (c) of this section, no change order executed or approved
by the purchasing division for commodities, business service
contracts or professional services may be made in excess of ten
percent of the original successful contract bid involving such
contracts with the state: Provided, That the provisions of this
article do not apply to alternate bids or to changes that were
unforeseen that may legitimately arise after performance under a
contract has begun, particularly in the case of certain
construction projects, contracts for professional services and
contracts regarding technology. For the purposes of this section
and article, "change order" means a written command or directive to
change, alter, vary or modify a contract for commodities, business
services or professional services that results in making an
essential difference that may amount to a loss of or change of
original identity or a substitution of one thing or another under
the terms of the original successful contract, including, but not
limited to, services, materials and labor that affects the original
successful contract bid price and usually results in an increase in
cost under that contract.
(b) In the event a change order in excess of the original
contract is made, the appropriate state agency is required to
obtain approval from the joint committee on government and finance
prior to effectuating such change order. Upon obtaining consent
from the joint committee on government and finance, the appropriate
state agency is authorized to effectuate the change order.
(c) In the event there is a need for a change order in excess
of ten percent of the original contract, such change order shall be
negotiated between the two lowest competitive bidders on a
competitive basis.
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(NOTE: The purpose of this bill is to prohibit change orders
in excess of ten percent of the original successful bid for
certain state contracts.
This section is new; therefore, strike-throughs and
underscoring have been omitted.)