Section 27-2605. PRICING CONSTRUCTION CONTRACTS

 

2605.1Unless otherwise authorized under this chapter, a contracting officer shall use firm-fixed-price contracts to procure construction.

 

2605.2A contract may be priced on a lump-sum basis (when a lump sum is paid for the total work or defined parts of the work), on a unit-price basis (when a unit price is paid for a specified quantity of work units), or a combination of both methods.

 

2605.3The contracting officer shall use lump-sum pricing in preference to unit pricing except when any one (1) of the following circumstances exists:

 

(a)Large quantities of work (such as excavation, grading, paving, building outside utilities, or site preparation) are involved which cannot be estimated with sufficient confidence to permit a lump-sum offer without a substantial contingency;

 

(b)Estimated quantities of work required may change significantly during construction; or

 

(c)Bidders would have to expend unusual effort to develop adequate estimates.

 

2605.4If an economic price adjustment provision is customary in contracts for the type of work being procured, or when omission of an adjustment provision would preclude a significant number of firms from submitting bids or would result in bidders including unwarranted contingencies in proposed prices, fixed-price contracts with economic price adjustments may be used in accordance with the applicable provisions of chapters 15 and 24 of this title.

 

source

Final Rulemaking published at 35 DCR 1581 (February 26, 1988).