Minnesota Administrative Rules

2890.4100 DEVIATIONS FROM MAXIMUM COSTS FOR CONTRACTOR SERVICES.

Subpart 1.

Bids over maximum costs owing to unavailability of contractors.

A cost for a contractor task that exceeds the maximum cost specified for that task in parts 2890.2400 to 2890.3850 is not prima facie unreasonable when:

A.

the bid accepted by the applicant before the provision of contractor services specifically states that the amount exceeds the maximum cost limits and provides a detailed explanation of the reasons for costs in excess of the maximum cost limits; and

B.

the applicant demonstrates by reasonable evidence that:

(1)

the applicant could not secure a bid to perform that contractor service for an amount not exceeding the maximum costs in parts 2890.2400 to 2890.3850 for that contractor service;

(2)

the applicant conducted an extensive search for bids from persons that could perform that contractor service or perform a comparable service at less expense that would make unnecessary the performance of that contractor service; and

(3)

the performance of that contractor service was essential to complete the corrective action properly.

Subp. 2.

Additional costs incurred after bid approved by applicant.

A.

Costs for contractor services that exceed the amount specified in a bid approved by the applicant are not prima facie unreasonable when:

(1)

the applicant approves a change order for the higher costs;

(2)

the higher costs were required by circumstances beyond the control of the contractor or applicant that could not have been reasonably anticipated when the bid was accepted by the applicant; and

(3)

the applicant demonstrates that the higher costs were essential to complete the corrective action properly.

B.

The applicant must approve change orders on a form prescribed by the board. The charge order form must contain the following:

(1)

a detailed description of the higher costs;

(2)

the reason for the changes from the original bid;

(3)

the amount originally proposed for each affected task and the amount actually charged for each affected task; and

(4)

signatures of the applicant and the contractor.

Statutory Authority:

MS s 115C.07

History:

20 SR 227; 28 SR 383

Published Electronically:

September 14, 2007