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(a) Any type of contract which promotes the best interests of the County may be used; however, compensation must not be based on cost plus a percentage of cost. A cost-reimbursement contract may be used if the Director determines that a cost-reimbursement contract is likely to be less costly to the County than any other type of contract or that it is impracticable to obtain the goods, services, or construction required except under a cost-reimbursement contract. Under a cost-reimbursement contract, compensation may be based on cost plus a fixed fee or an incentive fee.
(b) Each contract must be documented and authorized by a County official authorized by regulation to bind the County to a contract.
(c) A construction contract awarded under a competitive sealed bid must not prohibit the payment to a contractor of actual and direct damages that result from a delay in completing the project within contractual time limits if the delay is caused by the County unless the County acted to:
(1) protect the public health or safety; or
(2) conform to law. (1994 L.M.C., ch. 30, § 1.)
Editor’s note—See County Attorney Opinion dated 4/7/98 explaining that the “no damages for delays” language in County contracts complies with the Code.