SLS 23RS-279 ENGROSSED
2023 Regular Session
SENATE BILL NO. 83
BY SENATOR WOMACK
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
PUBLIC CONTRACTS. Provides for certain change orders when certain unit prices are
contained in the initial contract. (8/1/23)
1 AN ACT
2 To amend and reenact R.S. 38:2212(M)(5), relative to change orders; to provide for
3 documentation of change orders; to provide for exceptions related to unit price
4 change of change orders; to provide for new pricing change orders and redesign
5 change orders; to provide for contract limitations on change orders; and to provide
6 for related matters.
7 Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 38:2212(M)(5) is hereby amended and reenacted to read as follows:
9 §2212. Advertisement and letting to lowest responsible and responsive bidder;
10 public work; electronic bidding; participation in mentor-protégé
11 program; exemptions; subpoena
12 * * *
13 M. * * *
14 (5) Any change order pertaining to public work, not required by this Part to
15 be let out for public bid, shall either be negotiated in the best interest of the public
16 entity or let out for public bid as provided by this Part. Where the change order is
17 negotiated, the public entity shall require that such change order be fully documented
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 83
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1 and itemized as to costs, including material quantities, material costs, equipment
2 used, labor, taxes, insurance, employee benefits, other related costs, profit, and
3 overhead.
4 (a) Where certain unit prices are contained in the initial contract, no
5 deviations shall be allowed in computing negotiated change order costs unless
6 specified in contract documents. When a unit price change order is required it
7 shall be submitted to the designer of record or in the absence of the designer,
8 the public entity, within thirty days from the date of discovery of the work to be
9 performed by the change order.
10 (b) Any change order requiring new pricing by the contractor shall be
11 submitted to the designer of record or in the absence of the designer, the public
12 entity, within thirty days from the date of discovery of the work to be performed
13 by the change order.
14 (c) For any change order requiring redesign, the redesign shall not take
15 more than ninety days from the date of notification by the contractor to the
16 designer of record or in the absence of the designer, the public entity, of the
17 discovery of work to be performed by the change order. Extensions of time may
18 be granted by the public entity if necessary for redesign. Once the redesign is
19 complete, the contractor shall submit the cost estimate to the designer of record
20 or in the absence of the designer, the public entity, for the change order within
21 forty-five days for the redesigned work under the change order.
22 (d) For any change order, the public entity shall have forty-five days
23 from the submittal of the change order to the public entity, to negotiate, and
24 approve or reject the contractor's proposed cost estimate of the work to be
25 performed by the change order. Extensions of time may be granted by mutual
26 agreement or shall be granted as necessary for the public entity to obtain
27 governmental approval. The contractor shall not be required to provide to the
28 public entity any schedule updates incorporating a change order until that
29 change order is executed unless the schedule is needed for evaluation of the
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 83
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1 proposed change order.
2 (e) Except where a public work does not exceed the contract limit as
3 defined in this Section, the provisions of R.S. 38:2212(M) in regard to change
4 orders shall not be waived by contract.
5 * * *
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Archana D. Cadge.
DIGEST
SB 83 Engrossed 2023 Regular Session Womack
Present law provides when a change order is negotiated, the public entity shall require that
the change order be fully documented and itemized as to costs, including material quantities,
material costs, taxes, insurance, employee benefits, other related costs, profit, and overhead.
Proposed law retains present law and adds equipment use and labor to fully documented
itemized costs.
Present law provides where certain unit prices are contained in the initial contract, no
deviations shall be allowed in computing the negotiated change order.
Proposed law provides exceptions to present law allowing unit price change orders submitted
to the designer or public entity within 30 days from the date of discovery of the work to be
performed by the change order, or change orders requiring new pricing be submitted within
30 days from the date of discovery of the work to be performed by the change order.
Proposed law further provides for any change orders requiring redesign, provided the
redesign shall not take more than 90 days from notification by the contractor to the designer
of record or in the absence of the designer, the public entity, of the discovery of work to be
performed by the change order. Proposed law further provides extensions of time may be
granted if necessary for redesign. Once the redesign is complete, the contractor shall submit
the cost estimate to the designer or the public entity, for the change order within 45 days for
the redesigned work under the change order.
Proposed law provides for any change order, the public entity shall have 45 days from the
submittal of the change order to negotiate, approve, or reject the contractor's proposed cost
estimate of the work. Proposed law further provides extensions of time may be granted by
mutual agreement or shall be granted as necessary for the public entity to obtain
governmental approval.
Proposed law provides the contractor shall not be required to provide any schedule updates
incorporating a change order until that change order is executed, unless the schedule is
needed for evaluation of the proposed change order.
Proposed law provides the exceptions established in proposed law shall not be waived by
contract.
Effective August 1, 2023.
(Amends R.S. 38:2212(M)(5))
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 83
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Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Transportation,
Highways, and Public Works to the original bill
1. Modifies change order notice time lines.
2. Prohibits contractual waiver of certain provisions in law.
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.