§ 15-112. Change orders
West's Annotated Code of MarylandState Finance and ProcurementEffective: July 1, 2016
Effective: July 1, 2016
MD Code, State Finance and Procurement, § 15-112
§ 15-112. Change orders
(a)(1)(i) Except as provided in subparagraph (ii) of this paragraph, this section applies to State procurement contracts for construction.
(2) For purposes of this section, a written acceptance letter for a State Highway Administration or Maryland Aviation Administration procurement contract for construction shall have the same force and effect as a change order until the State Highway Administration or Maryland Aviation Administration issues a written change order.
(b)(1) Except as provided in paragraphs (2) and (3) of this subsection, a unit may not require a prime contractor and a prime contractor may not require a subcontractor to begin change order work under a contract until the procurement officer for the unit issues a written change order that specifies whether the work is to proceed, in compliance with the terms of the contract, on:
(ii) authorizes a refusal to perform work or to furnish labor or materials that a procurement officer has ordered the prime contractor to perform or to furnish because the procurement officer has determined that the work or labor is or the materials are required by a contract between a unit and the prime contractor; or
(iii) prejudices or impairs the right of a prime contractor to submit a claim or dispute to a procurement officer, in accordance with applicable law and the contract, seeking additional compensation for complying with an order of the procurement officer to perform work or to furnish labor or materials determined by the procurement officer to be required by a contract between the prime contractor and a unit.
(c) If the amount to be paid under an approved change order does not exceed $50,000, a unit shall pay an invoice for work performed and accepted under the change order as provided for in the contract within 30 days after the unit receives the invoice and in accordance with § 15-103 of this subtitle.
(d) Within 5 days after receipt of a written change order, a prime contractor shall provide a subcontractor with a copy of the approved change order and the amount to be paid to the subcontractor based on the portion of the change order work to be completed by the subcontractor.
(e) Before January 1, 2017, the Board shall propose regulations that provide for an expedited change order process for change orders valued at more than $50,000.
(f)(1) On or before December 31, 2016, each unit shall issue guidelines for the unit's change order process.
Added by Acts 2016, c. 580, § 1, eff. July 1, 2016; Acts 2016, c. 581, § 1, eff. July 1, 2016.
MD Code, State Finance and Procurement, § 15-112, MD STATE FIN & PROC § 15-112
Current with legislation effective through June 1, 2021, from the 2021 Regular Session of the General Assembly.
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