HLS 15RS-534 ENGROSSED
2015 Regular Session
HOUSE BILL NO. 314
BY REPRESENTATIVE PIERRE
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
PUBLIC CONTRACTS: Relative to the compensation of a contractor for services
performed pursuant to a contractual agreement with an agency
1 AN ACT
2To enact R.S. 38:2225.1(B)(3), relative to public contracts with political subdivisions; to
3 provide for inclusion of a clause authorizing compensation for the variation in size
4 of a project; to provide for an adjustment in the contract price; to provide a
5 contracted rate of compensation for contractor services in excess of the specified
6 contract or FEMA Project Worksheet limit; and to provide for related matters.
7Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 38:2225.1(B)(3) is hereby enacted to read as follows:
9 ยง2225.1. Contracts in which the state or political subdivision are participants;
10 preferences; assistance; exclusions
11 * * *
12 B.
13 * * *
14 (3)(a) Any contract entered into by a political subdivision shall include a
15 clause authorizing compensation for a variation in the size of the project of not more
16 than fifteen percent above or below the scope of work or estimated size of the project
17 specified within the contract or the FEMA Project Worksheet.
18 (b) An equitable adjustment in the contract price shall be made upon demand
19 of either party. The equitable adjustment shall be based upon any increase or
Page 1 of 2
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 15RS-534 ENGROSSED
HB NO. 314
1 decrease in costs due solely to the variation above or below fifteen percent of the
2 estimated, contracted size of the project.
3 (c) Notwithstanding any provision to the contrary, any political subdivision
4 that enters into a contract for services or public works that specifies a contract or
5 FEMA Project Worksheet limit which exceeds the eligibility requirements for
6 reimbursement in federal law shall be required to compensate the contractor at the
7 contracted rate, if the political subdivision ordered or directed performance.
8 * * *
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 314 Engrossed 2015 Regular Session Pierre
Abstract: Provides a contracted rate of compensation for excess contractor services
performed pursuant to public contracts entered into by political subdivisions.
Proposed law requires any contract entered into by a political subdivision contemplate the
variation in the actual size of the project of not more than 15% above or below the estimated
size of the project specified within the contract or FEMA Project Worksheet.
Proposed law allows either party to a contract to demand an equitable adjustment in a
contract price. Specifies that the equitable adjustment is based upon any increase or
decrease in costs due solely to the variation above or below 15% of the estimated, contracted
size of the project.
Proposed law requires that contractors performing services pursuant to a contract with a
political subdivision or with a FEMA Project Worksheet for services be compensated at the
equitable contracted rate, if the political subdivision ordered or directed items beyond the
contract or FEMA Project Worksheet even if the work exceeds federal eligibility
determinations or requirements.
(Adds R.S. 38:2225.1(B)(3))
Page 2 of 2
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.