Section 22-B9802. CONTRACT MODIFICATIONS

 

9802.1Only a CO is authorized to execute a contract modification on behalf of the Hospital. Other Hospital personnel shall not do any of the following:

 

(a)Execute contract modifications, including change orders;

 

(b)Act in a manner that causes a contractor to believe that they have authority to bind the Hospital; or

 

(c)Direct or encourage a contractor to perform work that should be the subject of a contract modification.

 

9802.2A contract modification, including a change issued unilaterally by the Hospital, shall be priced and a government estimate shall be prepared before signature by the parties, unless the interests of the Hospital would be adversely affected. If a significant cost increase could result from a contract modification, the CO shall negotiate a maximum contract price increase and include that price in the modification.

 

9802.3The CO shall not execute a contract modification, including a change order, that causes or will cause an increase in the funding level of the contract without having first obtained a certification of the availability of funds. The certification shall be based on the negotiated price or the negotiated maximum price.

 

9802.4A modification to a contract may be executed without having first obtained the certification required under this subsection if the modification includes a clause which conditions payment upon the availability of funds.

 

9802.5The CO shall use a bilateral contract modification (also known as a “supplemental agreement”) to do the following:

 

(a)Make negotiated equitable adjustments resulting from the issuance of a change order;

 

(b)Formalize a letter contract; or

 

(c)Reflect other agreements of the parties to modify the terms of the contract.

 

9802.6The CO shall use a unilateral contract modification to do the following:

 

(a)Make administrative changes;

 

(b)Make changes authorized by a provision of the contract other than a changes clause, such as an option; or

 

(c)Issue a termination notice.

 

9802.7A contractor shall be bound by the terms of the written contract and written contract modifications signed by the CO.

 

9802.8A contractor shall not rely upon any written or oral statements or directions of employees or agents of the Hospital other than the CO for authority to perform work, alter schedules or specifications, or any other action that would normally require a written contract modification.

 

9802.9After the CO issues an unpriced change order, the CO and the contractor shall execute a separate bilateral modification reflecting the resulting equitable adjustment in contract terms.

 

9802.10If the CO and the contractor agree in advance to an equitable adjustment in the contract price, delivery terms, or other contract terms, the CO shall issue a bilateral contract modification and shall not be required to issue a change order.

 

9802.11Failure to agree to any adjustment shall be a dispute under the disputes clause in the contract and shall be resolved in accordance with the procedures set forth in the Provisions of Protest and Disputes Section of this regulation (§§9816, 9817). However, nothing in this section shall excuse the contractor from proceeding with the contract as changed, except as provided in the Provision of Termination set forth in this regulation (§9814).

 

9802.12For a unilateral contract modification, the effective date shall be the date on which the CO executes the modification.

 

9802.13For a bilateral modification (supplemental agreement), the effective date shall be the date on which the CO executes the modification.

 

source

Final Rulemaking published at 41 DCR 4508, 4536 (July 8, 1994).