Senate Bill No. 107
(By Senators Craigo, Dittmar, Dugan, Bailey, Ross, Minear,
Walker, Kimble, Hunter and Anderson)
[Introduced January 14, 1998; referred to the Committee
on Government Organization; and then to the Committee on
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; exceptions; definitions;
and approval of change orders and negotiations.
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
(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 these
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 in the commodity or service supplied and
that may amount to a loss of or change of original identity or a
substitution of one commodity or service for another under the
terms of the original successful contract. This includes, but is
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 shall obtain
approval from the joint committee on government and finance prior
to effectuating the change order. Upon obtaining consent from
the joint committee on government and finance, the appropriate
state agency may 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, the appropriate
state agency shall negotiate the change between the two lowest
competitive bidders on a competitive basis.
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.