§ 37-2-42. Price adjustments. (a) For all construction contracts expected to exceed fifty thousand dollars ($50,000) in price, the chief purchasing officer shall specify clauses providing for adjustments to contract terms and conditions where there has been:

(1) A unilaterally ordered change by the state;

(2) A site condition differing from that indicated in the contract except for turnkey contracts or negotiated contracts when appropriate written findings of fact have been made;

(3) Variation in the estimated quantities in a contract providing for estimated quantities; or

(4) A unilateral suspension of work by the state.

(b) In addition, there shall also be specified for inclusion in all construction contracts expected to exceed fifty thousand dollars ($50,000) in price, a clause providing that a contract may be terminated for default, or upon written determination which sets forth the excuses for nonperformance. Further, the contract shall provide for liquidated damages when appropriate and as specified in the contract schedule with excuses for nonperformance specifically provided for therein.

(c) The above specified clauses and conditions required for inclusion in all construction contracts expected to exceed fifty thousand dollars ($50,000) in price shall be available for optional use in other construction contracts.

(d) In addition, there shall also be included in all contracts which are expected to exceed fifty thousand dollars ($50,000), a clause providing for the termination of the contract because of unreasonable delay in the performance thereof, and further providing for liquidated damages and for reimbursement for any monies expended by the state for the completion of the work specified by the terms of the contract.

History of Section. (P.L. 1989, ch. 526, § 2.)