Chapter 16.28


16.28.010    Contract clauses and their administration.

16.28.010 Contract clauses and their administration.

A. All borough contracts for supplies, services and construction shall include provisions necessary to define the responsibilities and rights of the parties to the contract. The chief procurement officer, after consultation with the borough attorney, may issue clauses appropriate for supply, service or construction contracts, addressing at least the following subjects:

1. The unilateral right of the borough to order in writing changes in the work within the scope of the contract;

2. The unilateral right of the borough to order in writing temporary stopping 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 borough;

9. Suspension of work on a construction project ordered by the borough; and

10. Site conditions differing from those indicated in the contract, or ordinarily encountered, except that a differing site conditions clause need not be included in a contract:

a. When the contract is negotiated,

b. When the contractor provided the site or design, or

c. When the parties have otherwise agreed with respect to the risk of differing site conditions.

B. 1. Adjustments in price resulting from the use of contract clauses required by subsection (A)(1) of this section shall be computed in one or more of the following ways:

a. By agreement on a fixed price adjustment before commencement of the pertinent performance or as soon thereafter as practicable,

b. By unit prices specified in the contract or subsequently agreed upon,

c. By the costs attributable to the events or situations under such clauses with adjustment of profit or fee, all as specified on the contract or subsequently agreed upon,

d. In such other manner as the contracting parties may mutually agree, or

e. In the absence of agreement by the parties, by a unilateral determination by the borough 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 Chapter 16.40 FNSBC;

2. A contractor shall be required to submit cost or pricing data if any adjustment in contract price is subject to the provisions of FNSBC 16.12.080.

C. The chief procurement officer, after consultation with the borough attorney, may establish standard contract clauses for use in borough contracts. If the chief procurement officer establishes any standard clauses addressing the subjects set forth in subsection (A) of this section, such clauses may be varied; provided, that any variations are supported by a written determination that states the circumstances justifying such variations; and provided, that notice of any such material variation be stated in the invitation for bids or request for proposals.

D. In addition to any other contractually required approval or acceptance, all borough contracts for work in a service area which utilize, in whole or in part, service area funds shall include a contract provision requiring, as a condition of final payment, acceptance of the work by the service area commission by either a person designated by the commission for that purpose or, in the absence of a designation, the service area chair. Public works shall make reasonable efforts to contact the designee or chair, but if three business days after submission of the request for acceptance of the work for final payment the chair or designee of a road service area has not responded, the rural services manager may accept the work on behalf of the service area. If, however, the contractor asserts that acceptance is being unreasonably withheld or that payment is otherwise legally required, the borough attorney, after consultation with the designee or the chair, may authorize final payment without service area commission acceptance. (Ord. 2013-68 § 3, 2013; Ord. 2013-31 § 2, 2013; Ord. 2002-29 § 28, 2002; Ord. 82-69, 1982. 2004 Code § 16.50.010.)