§ 42-13-6 - Price readjustments – Public works contracts.
SECTION 42-13-6
§ 42-13-6 Price readjustments –Public works contracts. – (a) Notwithstanding the provisions of any law to the contrary, the state andany municipality may adjust unit prices for crude oil, residual fuel oil, andliquid asphalt used in bituminous concrete, required in order to completeperformance of construction contracts awarded on or before December 31, 1973;provided, that the cost f.o.b. the supplier has increased more than twentypercent (20%) between the date the bids were publicly opened and read and thedate the crude oil, residual fuel oil, and liquid asphalt used in bituminousconcrete were purchased, and that the increase in cost of said crude oil,residual fuel oil, and liquid asphalt used in bituminous concrete was theresult of national shortages as a result of the energy crisis, so-called.
(b) The state and any municipality shall not enter into anysuch renegotiation of the contract unless it has first obtained Federal HighwayAdministration approval for matching funds; and provided further that any suchsupplemental agreement shall release the state or municipality from any and allfurther claims from the contractor with regard to the substance of thatagreement.
(c) Price adjustments authorized by this section shall becomputed to compensate the contractor only for the difference in cost of crudeoil, residual fuel oil, and liquid asphalt used in bituminous concrete betweensaid dates with no allowance for overhead or profit and with considerationgiven to the profit potential to the contractor on the construction contract.In arriving at the adjusted unit price, the determination of the state ormunicipality shall be final as to: (1) which unit prices are to be adjusted asa result of the energy crisis, so-called; (2) the cost of crude oil, residualfuel oil, and liquid asphalt used in bituminous concrete at the date the bidswere opened; (3) the cost of crude oil, residual fuel oil, and liquid asphaltused in bituminous concrete at the date of purchase; (4) the quantity to beadjusted; and (5) the price adjustment due the contractor.
(d) Upon request by the state or municipality, the contractorshall make his or her records available for audit by the state or municipalityto verify the increased costs.