KRS 176.110: Breach of contract -- Cancellation to keep expenditures within annual

income.

(1) If any person having a contract with the department fails to carry out the contract,

the department may cancel the contract and reaward it without advertisement if it

can obtain a qualified contractor to perform the work at the original contract price

or for less. Otherwise the work shall be advertised as required by law.

(2) When the department ascertains that the cost of any contract or the cost of

continued work on any contract will exceed the revenues of the fiscal year, the

department may cancel any such contract or any portion thereof necessary in order

to keep expenditures within the revenues of the fiscal year, and may contract for the

completion of such work when the funds are available without advertising the work

if it can obtain a qualified contractor to assume the work at the original contract

price. Otherwise the work shall be advertised as required by law.