KRS 45A.200: Contract adjustment clauses -- Termination clause.

(1) For all construction contracts expected to exceed fifty thousand dollars ($50,000) in

price, the secretary of the Finance and Administration Cabinet shall specify clauses

providing for adjustments to contract terms and conditions where there has been:

(a) A unilaterally ordered change by the Commonwealth; or

(b) A site condition differing from that indicated in the contract except for

turnkey contracts or negotiated contracts when appropriate written findings of

fact have been made; or

(c) Variation in the estimated quantities in a contract providing for estimated

quantities; or

(d) A unilateral suspension of work by the Commonwealth.

(2) In addition, there shall also be specified for inclusion in all construction contracts

expected to exceed fifty thousand dollars ($50,000) in price a clause providing that

a contract may be terminated for the convenience of the Commonwealth or for

default, and further providing for liquidated damages when appropriate and as

specified in the contract schedule, with excuses fo r nonperformance specifically

provided for therein.

(3) The above specified clauses and conditions required for inclusion in all construction

contracts expected to exceed fifty thousand dollars ($50,000) in price shall be

available for optional use in other construction contracts.