Rhode Island House Bill H8011

Rhode Island 2024 Regular Session

• Introduced: 3/5/24
• Refer: 3/5/24

Caption

Prohibits the extension of contracts by any state or municipal department or agency by the utilization of change orders if the additional work or services exceeds ten percent (10%) of the original value of the contract.

Impact

If enacted, H8011 would significantly revise the framework under which state and municipal contracts are managed, particularly concerning change orders. This could lead to a more stringent oversight of contract amendments, which in turn may foster greater accountability among contractors working with government agencies. By limiting change orders, the bill is likely to instigate changes in project management practices, compelling agencies to plan more accurately from the outset to avoid costly amendments later on.

Summary

House Bill H8011 proposes to amend existing laws regarding state purchases by prohibiting any state or municipal department from extending contracts via change orders if the additional services exceed 10% of the original contract value. This legislation aims to enhance fiscal responsibility within government contracts and promotes adherence to budget constraints. By regulating how contracts can be modified, the bill seeks to ensure that any changes to project scopes remain within previously established financial limits, thereby aiming to reduce potential wasteful spending.

Contention

Discussions surrounding H8011 may reveal divisions among various stakeholders. Proponents argue that the bill is necessary to prevent cost overruns and inefficiencies in government spending. On the other hand, critics may express concerns that such stringent limitations could hamper flexibility in project execution and that unforeseen challenges might arise during contract fulfillment that necessitate amendments beyond the 10% threshold. The balance between fiscal prudence and operational responsiveness is likely to be a point of contention as the bill progresses through the legislative process.