COMMITTEE SUBSTITUTE

FOR

Senate Bill No. 77

(By Senators Craigo, Minear, Ball, Ross, Hunter,

Sharpe and Kessler)


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[Originating in the Committee on Government Organization;

reported January 26, 2000.]

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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 ten-b, relating to prohibiting change orders in excess of ten percent of the original successful contract bid for certain state contracts; exceptions; definition; and notification of change orders.

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 ten-b, to read as follows:
ARTICLE 3. PURCHASING DIVISION.
§5A-3-10b. Change orders in excess of ten percent of original
contract prohibited.

(a) Notwithstanding any provision of this code to the contrary, and subject to subsection (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 section do not apply to alternate bids or to changes that were unforeseen that may legitimately arise after performance under a contract has begun.
(b) "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.
(c) In the event a change order in excess of ten percent of the original contract is made, the appropriate state agency, except the legislature, shall notify the joint committee on government and finance within thirty days of the change. The notice shall contain the details and the reasons for the change.