COMMITTEE SUBSTITUTE

FOR

Senate Bill No. 227

(By Senators Craigo and Dittmar)

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[Originating in the Committee on Finance;
reported on February 28, 1995.]
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A BILL to amend article three, chapter five-a of the code of West Virginia, one thousand nine hundred thirty-one, as amended, by adding thereto a new section, designated section thirty-seven-b, relating to prohibiting change orders in excess of ten percent of the original successful contract bid for certain state contracts.

Be it enacted by the Legislature of West Virginia:
That article three, chapter five-a of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended by adding thereto a new section, designated section thirty-seven-b, to read as follows:
ARTICLE 3. PURCHASING DIVISION.
§5A-3-37b. Change orders in excess of ten percent of original
contract prohibited.

(a) Notwithstanding any provision of this chapter to the contrary, and subject to the exceptions set forth in subsection (b) and (c) of this section, no change order executed or approved by the purchasing division for commodities, business service contracts or professional services may be made in excess of ten percent of the original successful contract bid involving such contracts with the state: Provided, That the provisions of this article shall not apply to alternate bids.
(b) In the event a change order in excess of the original contract is made, the appropriate state agency is required to obtain approval from the joint committee on government and finance prior to effectuating such change order. Upon obtaining consent from the joint committee on government and finance, the appropriate state agency is authorized to effectuate the change order.
(c) In the event there is a need for a change order in excess of ten percent of the original contract, such change order shall be negotiated between the two lowest competitive bidders on a competitive basis.