Senate Bill No. 77

(By Senators Craigo, Minear, Ball, Ross, Hunter, Sharpe and Kessler)

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[Introduced January 14, 2000; referred to the Committee on Government Organization; and then to the Committee on Finance.]
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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; 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
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 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.