The following section pertains to contract clauses and price adjustments.
(A) Contract clauses and their administration. All contracts for supplies, services and construction shall include provisions necessary to define the responsibilities and rights of the parties to the contract. At the direction of the Bids and Purchases Committee or the Town’s Attorney at the direction of the Mayor may issue clauses appropriate for supply, service or construction contracts, addressing at least the following subjects:
(1) The unilateral right of the town to order written changes in the work within the scope of the contract;
(2) The unilateral right of the town to order in writing temporary stoppage of the work or delaying performance that does not alter the scope of the contract;
(3) Variations occurring between estimated quantities of work in a contract and actual quantities;
(4) Defective pricing;
(5) Liquidated damages;
(6) Specified excuses for delay or nonperformance;
(7) Termination of the contract for default;
(8) Termination of the contract in whole or in part for the convenience of the town;
(9) Suspension of work on a construction project ordered by the town; and
(10) Site conditions differing from those indicated in the contract, or ordinarily encountered except that differing site condition clauses need not be included in a contract:
(a) When the contract is negotiated;
(b) When the contract provides the site; or
(c) When the parties have otherwise agreed with respect to the risk of differing site conditions.
(11) Hazardous materials; and
(12) Drug free work place.
(B) Price adjustments. A contractor shall be required to submit cost or pricing data if any adjustment in contract price is desired to the Bid and Purchases Committee through the Town Clerk. Adjustments in price resulting from the use of contract clauses required in division (A) above shall be computed in one or more of the following ways:
(1) By agreement on a fixed price adjustment before commencement of the pertinent performance or as soon thereafter as practicable;
(2) By unit prices specified in the contract or subsequently agreed upon;
(3) By the cost attributable to the events or situations under such clauses with adjustment of profit or fee, all as specified in the contract or subsequently agreed upon;
(4) In such other manner as the contracting parties may mutually agree; or
(5) In the absence of agreement by the parties, by unilateral determination by the town of the reasonable costs allocable, either directly or indirectly, to the events or situations under such clauses as accounted for in accordance with generally accepted accounting principles, and with adjustment of profit or fee, as appropriate, and subject to the provisions of legal and contractual remedies.
(C) Standard clauses and their modifications. At the direction of the Bids and Purchases Committee, the Mayor may establish standard contract clauses for use in town contracts.
(Ord. 001-3, passed 3-1-2001)