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Second Substitute H.B. 503

This document includes House Floor Amendments incorporated into the bill on Thu, Mar 1, 2012 at 10:51 AM by lerror. --> This document includes Senate 2nd and 3rd Reading Floor Amendments incorporated into the bill on Thu, Mar 8, 2012 at 8:28 PM by kcallred. -->

Representative Michael T. Morley proposes the following substitute bill:


             1     
CONSTRUCTION AMENDMENTS

             2     
2012 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Michael T. Morley

             5     
Senate Sponsor: Wayne L. Niederhauser

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill amends provisions of the Utah Code relating to construction contract terms,
             10      bond claims, and lien claims.
             11      Highlighted Provisions:
             12          This bill:
             13          .    defines terms;
             14          .    provides that, unless otherwise specified by contract, the interest rate applicable to a
             15      lien or bond claim is the statutory rate of 10% per annum;
             16          .    provides that the following are not exempt from providing preliminary notice of a
             17      payment bond claim or a lien:
             18              .    a temporary labor service company;
             19              .    a professional employer company or organization; S. or
             20               [ .    a union trust fund; or ] .S
             21              .    any other entity that provides S. [ or collects for ] .S labor; H. [ and ]
             21a      . requires a construction contract to contain a differing site conditions clause; and
             21b           . provides that a design-build construction project contract may include provision by
             21c      the contractor of operations, maintenance, or financing ; and .H
             22          .    makes technical changes.
             23      Money Appropriated in this Bill:
             24          None
             25      Other Special Clauses:

             26          None
             27      Utah Code Sections Affected:
             28      AMENDS:
             29          14-1-19, as enacted by Laws of Utah 1987, Chapter 218
             30          14-1-20, as last amended by Laws of Utah 2011, Chapter 299
             31          14-2-1, as last amended by Laws of Utah 2004, Chapter 111
             32          14-2-2, as last amended by Laws of Utah 2004, Chapter 111
             33          14-2-5, as last amended by Laws of Utah 2011, Chapter 299
             34          38-1-32.5, as enacted by Laws of Utah 2011, Chapter 299
             34a      H. 63G-6-501, as renumbered and amended by Laws of Utah 2008, Chapter 382
             34b          63G-6-502, as last amended by Laws of Utah 2010, Chapter 358 .H
             35          63G-6-506, as last amended by Laws of Utah 2011, Chapter 299
             36          63G-6-601, as renumbered and amended by Laws of Utah 2008, Chapter 382
             37      ENACTS:
             38          38-1-41, Utah Code Annotated 1953
             39          53A-20-109, Utah Code Annotated 1953
             40          63G-6-506.5, Utah Code Annotated 1953
             40a      H. Uncodified Material Affected:
             40b      ENACTS UNCODIFIED MATERIAL .H
             41     
             42      Be it enacted by the Legislature of the state of Utah:
             43          Section 1. Section 14-1-19 is amended to read:
             44           14-1-19. Failure of government entity to obtain payment bond -- Right of action
             45      -- Notice.
             46          (1) If the state or a political subdivision fails to obtain a payment bond, it shall, upon
             47      demand by a person who has furnished labor or supplied materials to the contractor or
             48      subcontractor for the work provided for in a contract which is subject to Section 14-1-18 ,
             49      promptly make payment to that person. [That person]
             50          (2) A person described in Subsection (1):
             51          (a) shall have a direct right of action against the state or the political subdivision in any
             52      court having jurisdiction in any county in which the contract was to be performed, upon giving
             53      written notice to the state or political subdivision within 90 days from the date on which such
             54      person performed the last of the labor or supplied the last of the material for which claim is
             55      made[. The person];
             56          (b) shall state in the notice a designation of the construction project and its location, the

             57      amount claimed, and the name of the party for whom the labor was performed or to whom the
             58      material was supplied[. The notice shall be served]; and
             59          (c) shall serve the notice by registered or certified mail, postage prepaid, on the state
             60      agency or political subdivision that is a party to the contract. [No such action may be
             61      commenced after the expiration of]
             62          (3) An action described in this section may not be commenced later than one year after
             63      the day on which the last of the labor was performed or material was supplied by [such] the
             64      person bringing the action.
             65          (4) Unless otherwise specified in a lawful contract between the state or the political
             66      subdivision against which the claim is made and the person demanding payment, the interest
             67      rate applicable to the payment or claim is the rate described in Subsection 15-1-1 (2).
             68          Section 2. Section 14-1-20 is amended to read:
             69           14-1-20. Preliminary notice requirement.
             70          (1) Any person furnishing labor, service, equipment, or material for which a payment
             71      bond claim may be made under this chapter shall provide preliminary notice to the designated
             72      agent as prescribed by Section 38-1-32.5 , except that this section does not apply:
             73          (a) to [a person] an individual performing labor for wages; or
             74          (b) if a notice of commencement is not filed as prescribed in Section 38-1-31.5 for the
             75      project or improvement for which labor, service, equipment, or material is furnished.
             76          (2) Any person who fails to provide the preliminary notice required by Subsection (1)
             77      may not make a payment bond claim under this chapter.
             78          (3) The preliminary notice required by Subsection (1) shall be provided prior to
             79      commencement of any action on the payment bond.
             80          (4) Subsection (1)(a) does not exempt the following from complying with the
             81      requirements of this section:
             82          (a) a temporary labor service company or organization;
             83          (b) a professional employer company or organization; S. or
             84           [ (c) a union trust fund; or ] .S
             85           S. [ (d) ] (c) .S any other entity that provides labor S. [ or collects for labor ] .S .
             86          Section 3. Section 14-2-1 is amended to read:
             87           14-2-1. Definitions -- Payment bond required -- Right of action -- Attorney fees.

             88          (1) For purposes of this chapter:
             89          (a) "Commercial contract" means a contract for the construction, alteration, or repair of
             90      the following if it is not residential construction:
             91          (i) a building;
             92          (ii) a structure; or
             93          (iii) an improvement upon land that is not associated with a single family detached
             94      housing.
             95          (b) "Contractor" means any person who is or may be awarded an original commercial
             96      contract for the construction, alteration, or repair of any building, structure, or improvement
             97      upon land.
             98          (c) "Owner" means any person contracting with the original contractor for construction,
             99      alteration, or repair of the following if it is not residential construction:
             100          (i) a building;
             101          (ii) a structure; or
             102          (iii) an improvement upon land.
             103          (d) (i) "Residential construction" means the construction, alteration, or repair of:
             104          (A) single family detached housing; or
             105          (B) multifamily attached housing up to and including a fourplex.
             106          (ii) "Residential construction" includes rental housing.
             107          (2) Before any original commercial contract exceeding $50,000 in amount for the
             108      construction, alteration, or repair of any building, structure, or improvement upon land is
             109      awarded to any contractor, the owner shall obtain from the contractor a payment bond:
             110          (a) complying with Subsection (3); and
             111          (b) that becomes binding upon the award of the original commercial contract to the
             112      contractor.
             113          (3) The payment bond shall be:
             114          (a) with a surety or sureties satisfactory to the owner for the protection of all persons
             115      supplying labor, services, equipment, or material in the prosecution of the work provided for in
             116      the commercial contract; and
             117          (b) in a sum equal to the original commercial contract price.
             118          (4) A person shall have a right of action on a payment bond under this chapter for any

             119      unpaid amount due that person if that person:
             120          (a) has furnished labor, services, equipment, or material in the prosecution of the work
             121      provided for in the commercial contract for which the payment bond is furnished under this
             122      chapter; and
             123          (b) has not been paid in full within 90 days after the last day on which that person:
             124          (i) performed the labor or service for which a claim is made; or
             125          (ii) supplied the equipment or material for which the claim is made.
             126          (5) (a) An action under this section shall be brought in a court of competent jurisdiction
             127      in the county where the commercial contract was to be performed and not elsewhere.
             128          (b) An action under this section is barred if not commenced within one year after the
             129      last day on which the claimant:
             130          (i) performed the labor or service on which the claim is based; or
             131          (ii) supplied the equipment or material on which the claim is based.
             132          (c) The obligee named in the payment bond need not be joined as a party to an action
             133      under this section.
             134          (d) In any action upon a payment bond under this section, the court may award
             135      reasonable [attorneys'] attorney fees to the prevailing party, which [attorneys'] attorney fees
             136      shall be taxed as costs in the action.
             137          (6) The payment bond shall be exhibited to any interested person upon request.
             138          (7) In any suit upon a payment bond under this chapter, the court shall award
             139      reasonable [attorneys'] attorney fees to the prevailing party.
             140          (8) Unless otherwise specified in a lawful contract between the owner and the person
             141      making a claim under this section, the interest rate applicable to the claim is the rate described
             142      in Subsection 15-1-1 (2).
             143          Section 4. Section 14-2-2 is amended to read:
             144           14-2-2. Failure of owner to obtain payment bond -- Liability.
             145          (1) An owner who fails to obtain a payment bond required under Section 14-2-1 is
             146      liable to each person who performed labor or service or supplied equipment or materials under
             147      the commercial contract for the reasonable value of the labor or service performed or the
             148      equipment or materials furnished up to but not exceeding the commercial contract price.
             149          (2) An action to recover on the liability described in Subsection (1) may not be

             150      commenced [after the expiration of] later than one year after the day on which:
             151          (a) the last of the labor or service was performed; or
             152          (b) the equipment or material was supplied by the person.
             153          (3) In an action for failure to obtain a bond, the court shall award reasonable
             154      [attorneys'] attorney fees to the prevailing party. These [attorneys'] attorney fees shall be taxed
             155      as costs in the action.
             156          Section 5. Section 14-2-5 is amended to read:
             157           14-2-5. Preliminary notice requirement.
             158          (1) Any person furnishing labor, service, equipment, or material for which a payment
             159      bond claim may be made under this chapter shall provide preliminary notice to the designated
             160      agent as prescribed by Section 38-1-32 , except that this section does not apply to [a person] an
             161      individual performing labor for wages.
             162          (2) Any person who fails to provide the preliminary notice required by Subsection (1)
             163      may not make a payment bond claim under this chapter.
             164          (3) The preliminary notice required by Subsection (1) shall be provided prior to
             165      commencement of any action on the payment bond.
             166          (4) Subsection (1) does not exempt the following from complying with the
             167      requirements of this section:
             168          (a) a temporary labor service company or organization;
             169          (b) a professional employer company or organization; S. or .S
             170           S. [ (c) a union trust fund; or ] .S
             171           S. [ (d) ] (c) .S any other entity that provides labor S. [ or collects for labor ] .S .
             172          Section 6. Section 38-1-32.5 is amended to read:
             173           38-1-32.5. Preliminary notice on government project.
             174          (1) (a) Except for a person who has a contract with an owner or an owner-builder or a
             175      laborer compensated with wages, a subcontractor on a government project shall file a
             176      preliminary notice with the database by the later of:
             177          [(a)] (i) 20 days after the subcontractor commences the subcontractor's own work or
             178      commences furnishing labor, service, equipment, or material to the construction project; and
             179          [(b)] (ii) 20 days after the filing of a notice of commencement, if the subcontractor's
             180      work commences before the filing of the first notice of commencement.

             181          (b) Subsection (1) does not exempt the following from complying with the
             182      requirements of this section:
             183          (i) a temporary labor service company or organization;
             184          (ii) a professional employer company or organization; S. or .S
             185           S. [ (iii) a union trust fund; or ] .S
             186           S. [ (iv) ] (iii) .S any other entity that provides labor S. [ or collects for labor ] .S .
             187          (2) A preliminary notice filed within the period described in Subsection (1) is effective
             188      as to all labor, service, equipment, and material that the subcontractor furnishes to the
             189      construction project, including labor, service, equipment, and material provided that the
             190      subcontractor furnishes to more than one contractor or subcontractor.
             191          (3) (a) If more than one notice of commencement is filed for a project, a person may
             192      attach a preliminary notice to any notice of commencement filed for the project.
             193          (b) A preliminary notice attached to an untimely notice of commencement is valid if
             194      there is also a valid and timely notice of commencement for the project.
             195          (4) If a person files a preliminary notice after the period prescribed by Subsection (1),
             196      the preliminary notice becomes effective five days after the day on which the preliminary
             197      notice is filed.
             198          (5) Except as provided in Subsection (8), failure to file a preliminary notice within the
             199      period required by Subsection (1) precludes a person from maintaining any claim for
             200      compensation earned for labor, service, material, or equipment furnished to the construction
             201      project before the expiration of five days after the late filing of a preliminary notice, except as
             202      against the person with whom the person contracted.
             203          (6) A preliminary notice on a government project shall include:
             204          (a) the government project-identifying information;
             205          (b) the name, address, and telephone number of the person furnishing the labor,
             206      service, equipment, or material;
             207          (c) the name and address of the person who contracted with the claimant for the
             208      furnishing of the labor, service, equipment, or material;
             209          (d) the name of the record or reputed owner of the project;
             210          (e) the name of the original contractor under which the claimant is performing or will
             211      perform its work; and

             212          (f) the address of the project or a description of the location of the project.
             213          (7) Upon request, an original contractor shall provide a subcontractor with the number
             214      assigned to the project by the designated agent.
             215          (8) A person who provides labor, service, equipment, or material before the filing of a
             216      notice of commencement need not file a preliminary notice to maintain any right the person
             217      would otherwise have, if the notice of commencement is filed more than 15 days after the day
             218      on which the person begins work on the project.
             219          (9) Subsections 38-1-32 (2), (3), (4), (5), and (6) apply to a preliminary notice on a
             220      government project under this section to the same extent that those subsections apply to a
             221      preliminary notice on a private project under Section 38-1-32 .
             222          Section 7. Section 38-1-41 is enacted to read:
             223          38-1-41. Interest rate on lien.
             224          Unless otherwise specified in a lawful contract between the owner-builder and the
             225      person claiming a lien under this chapter, the interest rate applicable to the lien is the rate
             226      described in Subsection 15-1-1 (2).
             227          Section 8. Section 53A-20-109 is enacted to read:
             228          53A-20-109. Required contract terms.
             229           H. [ (1) As used in this section," differing site conditions clause" means a clause in a
             230      construction contract that provides for an equitable adjustment to the contract in the event that
             231      the contractor discovers, and promptly reports to the government entity that contracted for the
             232      construction, the existence on the construction site of any of the following that were not known
             233      by the contractor at the time the contract was executed:
             234          (a) subsurface or latent physical conditions that differ materially from the conditions
             235      indicated in the contract; or
             236          (b) physical conditions of an unusual nature that differ materially from those ordinarily
             237      encountered for the type of construction or for the location of the construction site.
             238          (2) A contract for the construction of a school building shall contain a differing site
             239      conditions clause. ]
             239a1           A contract for the construction of a school building shall contain a clause that
             239a2      addresses the rights of the parties when, after the contract is executed, site conditions are
             239a3      discovered that:
             239a4          (1) the contractor did not know existed, and [ should ] could not have reasonably
             239a5      known existed, at the time
             239a6      that the contract was executed; and
             239a7          (2) materially impacts the costs of construction.

             239a      H. Section 9. Section 63G-6-501 is amended to read:
             239b      63G-6-501.   Alternative methods of construction contracting management.
             239c          (1) (a) Rules shall provide as many alternative methods of construction contracting
             239d      management as determined to be feasible.
             239e          (b) These rules shall:
             239f          (i) grant to the chief procurement officer or the head of the purchasing agency responsible for
             239g      carrying out the construction project the discretion to select the appropriate method
             239g1      of construction .H

             239h      H.contracting management for a particular project; and
             239i          (ii) require the procurement officer to execute and include in the contract file a written
             239j      statement setting forth the facts which led to the selection of a particular method of construction
             239k      contracting management for each project.
             239l          (c) Before choosing a construction contracting management method, the chief procurement
             239m      officer or the head of the purchasing agency responsible for carrying out the construction project shall
             239n      consider the following factors:
             239o          (i) when the project must be ready to be occupied;
             239p          (ii) the type of project;
             239q          (iii) the extent to which the requirements of the procuring agencies and the ways in which they
             239r      are to be met are known;
             239s          (iv) the location of the project;
             239t          (v) the size, scope, complexity, and economics of the project;
             239u          (vi) the source of funding and any resulting constraints necessitated by the funding source;
             239v          (vii) the availability, qualification, and experience of state personnel to be assigned to the
             239w      project and how much time the state personnel can devote to the project; and
             239x          (viii) the availability, qualifications, and experience of outside consultants and contractors to
             239y      complete the project under the various methods being considered.
             239z          (2) (a) Rules adopted by state public procurement units and local public procurement units to
             239aa      implement this section may authorize the use of a Construction Manager/General Contractor as one
             239ab      method of construction contracting management.
             239ac          (b) Those rules shall require that:
             239ad          (i) the Construction Manager/General Contractor shall be selected using one of the source
             239ae      selection methods provided for in Part 4, Source Selections and Contract Formation, and
             239af      Section 63G-6-502; and
             239ag          (ii) when entering into any subcontract that was not specifically included in the Construction
             239ah      Manager/General Contractor's cost proposal submitted under the requirements of
             239ai      Subsection (2)(b)(i), the Construction Manager/General Contractor shall procure that subcontractor
             239aj      by using one of the source selection methods provided for in Part 4, Source Selections and Contract
             239ak      Formation, in the same manner as if the subcontract work was procured directly by the state.
             239al          (3) Procurement rules adopted by the State Building Board under Subsection (1) for state
             239am      building construction projects may authorize the use of a design-build provider as one method of
             239an      construction contracting management.
             239ao           (4) A design-build contract or a construction manager/general contractor contract may
             239ap      include provision by the contractor of operations, maintenance, or financing.
             239aq          Section 10. Section 63G-6-502 is amended to read:
             239ar          63G-6-502.   Procurement of design-build transportation project contracts.
             239as          (1) As used in this section: .H

             239at          H.(a) "Design-build transportation project contract" means the procurement of both the
             239au      design and construction of a transportation project in a single contract with a company or
             239av      combination of companies capable of providing the necessary engineering services and construction.
             239aw          (b) "Transportation agency" means:
             239ax          (i) the Department of Transportation;
             239ay          (ii) a county of the first or second class, as defined in Section 17-50-501;
             239az          (iii) a municipality of the first class, as defined in Section 10-2-301;
             239ba          (iv) a public transit district that has more than 200,000 people residing within its boundaries;
             239bb      and
             239bc          (v) a public airport authority.
             239bd          (2) Except as provided in Subsection (3), a transportation agency may award a design-build
             239be      transportation project contract for any transportation project that has an estimated cost of at least
             239bf      $50,000,000 by following the requirements of this section.
             239bg          (3) (a) The Department of Transportation:
             239bh          (i) may award a design-build transportation project contract for any transportation project by
             239bi      following the requirements of this section; and
             239bj          (ii) shall make rules, by following the procedures and requirements of Title 63G, Chapter 3,
             239bk      Utah Administrative Rulemaking Act, establishing requirements for the procurement of its
             239bl      design-build transportation project contracts in addition to those required by this section.
             239bm          (b) A public transit district that has more than 200,000 people residing within its boundaries:
             239bn          (i) may award a design-build transportation project contract for any transportation project by
             239bo      following the requirements of this section; and
             239bp          (ii) shall pass ordinances or a resolution establishing requirements for the procurement of its
             239bq      design-build transportation project contracts in addition to those required by this section.
             239br          (c) A design-build transportation project contract authorized under this Subsection (3) is not
             239bs      subject to the estimated cost threshold under Subsection (2).
             239bt           (d) A design-build transportation project contract may include provision by the contractor of
             239bu      operations, maintenance, or financing.
             239bv      (4) (a) Before entering a design-build transportation project contract, a transportation agency may
             239bw      issue a request for qualifications to prequalify potential contractors.
             239bx          (b) Public notice of the request for qualifications shall be given in accordance with policy
             239by      board rules.
             239bz          (c) A transportation agency shall require, as part of the qualifications specified in the request
             239ca      for qualifications, that potential contractors at least demonstrate their:
             239cb          (i) construction experience;
             239cc          (ii) design experience;
             239cd          (iii) financial, manpower, and equipment resources available for the project; and
             239ce          (iv) experience in other design-build transportation projects with attributes similar to the .H

             239cf      H. project being procured.
             239cg          (d) The request for qualifications shall identify the number of eligible competing proposers
             239ch      that the transportation agency will select to submit a proposal, which must be at least two.
             239ci          (5) (a) The transportation agency shall:
             239cj          (i) evaluate the responses received from the request for qualifications;
             239ck          (ii) select from their number those qualified to submit proposals; and
             239cl          (iii) invite those respondents to submit proposals based upon the transportation agency's
             239cm      request for proposals.
             239cn          (b) (i) Except as provided in Subsection (5)(b)(ii), if the transportation agency fails to receive
             239co      at least two qualified eligible competing proposers, the transportation agency shall readvertise the
             239cp      project.
             239cq          (ii) A transportation agency may award a contract for a transportation project that has an
             239cr      estimated cost of $5,000,000 or less to a qualified eligible proposer if:
             239cs          (A) only a single proposal is received; and
             239ct          (B) the transportation agency determines that:
             239cu          (I) the proposal is advantageous to the state; and
             239cv          (II) the proposal price is reasonable.
             239cw          (6) The transportation agency shall issue a request for proposals to those qualified respondents
             239cx      that:
             239cy          (a) includes a scope of work statement constituting an information for proposal that may
             239cz      include:
             239da          (i) preliminary design concepts;
             239db          (ii) design criteria, needs, and objectives;
             239dc          (iii) warranty and quality control requirements;
             239dd          (iv) applicable standards;
             239de          (v) environmental documents;
             239df          (vi) constraints;
             239dg          (vii) time expectations or limitations;
             239dh          (viii) incentives or disincentives; and
             239di          (ix) other special considerations;
             239dj          (b) requires submitters to provide:
             239dk          (i) a sealed cost proposal;
             239dl          (ii) a critical path matrix schedule, including cash flow requirements;
             239dm          (iii) proposal security; and
             239dn          (iv) other items required by the department for the project; and
             239do          (c) may include award of a stipulated fee to be paid to submitters who submit unsuccessful
             239dp      proposals.
             239dq          (7) The transportation agency shall: .H

             239dr          H. (a) evaluate the submissions received in response to the request for proposals from the
             239ds      prequalified proposers;
             239dt          (b) comply with rules relating to discussion of proposals, best and final offers, and evaluations
             239du      of the proposals submitted; and
             239dv          (c) after considering price and other identified factors, award the contract to the responsible
             239dw      proposer whose proposal is most advantageous to the state.     .H
             240          Section H. [ 9 ] 11 .H . Section 63G-6-506 is amended to read:
             241           63G-6-506. Preliminary notice requirement.
             242          (1) Any person furnishing labor, service, equipment, or material for which a payment

             243      bond claim may be made under this chapter shall provide preliminary notice to the designated
             244      agent as prescribed by Section 38-1-32.5 , except that this section does not apply:
             245          (a) to [a person] an individual performing labor for wages; or
             246          (b) if a notice of commencement is not filed as prescribed in Section 38-1-31.5 for the
             247      project or improvement for which labor, service, equipment, or material is furnished.
             248          (2) Any person who fails to provide the preliminary notice required by Subsection (1)
             249      may not make a payment bond claim under this chapter.
             250          (3) The preliminary notice required by Subsection (1) must be provided before
             251      commencement of any action on the payment bond.
             252          (4) Subsection (1)(a) does not exempt the following from complying with the
             253      requirements of this section:
             254          (a) a temporary labor service company or organization;
             255          (b) a professional employer company or organization; S. or .S
             256           S. [ (c) a union trust fund; or ] .S
             257           S. [ (d) ] (c) .S any other entity that provides labor S. [ or collects for labor ] .S .
             258          Section H. [ 10 ] 12 .H . Section 63G-6-506.5 is enacted to read:
             259          63G-6-506.5. Interest rate for bond claim.
             260          Unless otherwise specified in a lawful contract between a public procurement unit and
             261      the person making a bond claim against the public procurement unit, the interest rate applicable
             262      to the bond claim is the rate described in Subsection 15-1-1 (2).
             263          Section H. [ 11 ] 13 .H . Section 63G-6-601 is amended to read:
             264           63G-6-601. Required contract clauses -- Computation of price adjustments -- Use
             265      of rules and regulations.
             266          (1) Rules and regulations shall require for state construction contracts and may permit
             267      or require for state contracts for supplies and services the inclusion of clauses providing for
             268      adjustments in prices, time of performance, or other appropriate contract provisions, and
             269      covering the following subjects:
             270          (a) the unilateral right of the state to order in writing changes in the work within the
             271      scope of the contract and changes in the time of performance of the contract that do not alter
             272      the scope of the contract work;
             273          (b) variations occurring between estimated quantities of work in a contract and actual

             274      quantities;
             275          (c) suspension of work ordered by the state; and
             276          (d) site conditions differing from those indicated in the construction contract, or
             277      ordinarily encountered, except that differing site conditions clauses required by the rules and
             278      regulations need not be included in a construction contract when the contract is negotiated,
             279      when the contractor provides the site or design, or when the parties have otherwise agreed with
             280      respect to the risk of differing site conditions.
             281          (2) Adjustments in price pursuant to clauses promulgated under Subsection (1) shall be
             282      computed in one or more of the following ways:
             283          (a) by agreement on a fixed price adjustment before commencement of the pertinent
             284      performance or as soon thereafter as practicable;
             285          (b) by unit prices specified in the contract or subsequently agreed upon;
             286          (c) by the costs attributable to the events or situations under the clauses with
             287      adjustment of profit or fee, all as specified in the contract or subsequently agreed upon;
             288          (d) in any other manner as the contracting parties may mutually agree; or
             289          (e) in the absence of agreement by the parties, by a unilateral determination by the state
             290      of the costs attributable to the events or situations under the clauses with adjustment of profit
             291      or fee, all as computed by the state in accordance with applicable sections of the rules and
             292      regulations issued under Subsection 63G-6-415 (1) and subject to the provisions of Part 8,
             293      Legal and Contractual Remedies.
             294          (3) A contractor shall be required to submit cost or pricing data if any adjustment in
             295      contract price is subject to the provisions of Section 63G-6-415 .
             296          (4) Rules and regulations shall require for state construction contracts and may permit
             297      or require for state contracts for supplies and services the inclusion of clauses providing for
             298      appropriate remedies and covering at least the following subjects:
             299          (a) liquidated damages as appropriate;
             300          (b) specified excuses for delay or nonperformance;
             301          (c) termination of the contract for default; and
             302          (d) termination of the contract in whole or in part for the convenience of the state.
             303          (5) The contract clauses promulgated under this section shall be set forth in rules and
             304      regulations. However, the chief procurement officer or the head of a purchasing agency may

             305      modify the clauses for inclusion in any particular contract. Any variations shall be supported
             306      by a written determination that describes the circumstances justifying the variations, and notice
             307      of any material variation shall be included in the invitation for bids or request for proposals.
             308           H. [ (6) (a) As used in this Subsection (6), "differing site conditions clause" means a clause
             309      in a construction contract that provides for an equitable adjustment to the contract in the event
             310      that the contractor discovers, and promptly reports to the public procurement unit that
             311      contracted for the construction, the existence on the construction site of any of the following
             312      that were not known by the contractor at the time the contract was executed:
             313          (i) subsurface or latent physical conditions that differ materially from the conditions
             314      indicated in the contract; or
             315          (ii) physical conditions of an unusual nature that differ materially from those ordinarily
             316      encountered for the type of construction or for the location of the construction site.
             317          (b) Notwithstanding any provision of this chapter to the contrary, a contract for
             318      construction entered into by a public procurement unit shall contain a differing site conditions
             319      clause. ] (6) A contract for construction entered into by a public procurement unit shall contain
             319a      a clause that addresses the rights of the parties when, after the contract is executed, site
             319b      conditions are discovered that:
             319c      (a) the contractor did not know existed, and should not have known existed, at the time that
             319d      the contract was executed; and
             319e      (b) materially impacts the costs of construction.
             319f           Section 14. Mountain View Corridor Construction.
             319g      The Department of Transportation may issue a request for proposals to construct Mountain
             319h      View Corridor from 5400 South to I-80. The request for proposals may include the provision
             319i      of financing by the contractor for the construction project. .H

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