Current through September 18, 2024
A. A contract shall mean a promise, or a set
of promises, for breach of which the law gives a remedy, and the performance of
which the law recognizes as a duty.
B. Under R.I. Gen. Laws §
37-2-54(3),
No purchase or contract shall be binding on the state or any agency thereof
unless approved by the Department [of Administration] or made under general
regulations which the Chief Purchasing Officer may prescribe.
1. The terms and conditions of a valid
Purchase Order and its supplements, as issued by the Office of Purchases and
signed by the Purchasing agent or his designee, shall constitute the primary
contractual instrument of the state.
a. Unless
specifically established by law, regulation or procedures published by the
Chief Purchasing Officer, no other instrument shall constitute a state
purchasing contract.
b. Oral
Agreements - Any alleged oral agreement or arrangements made by a bidder or
contractor with any agency or an employee of the Office of Purchases may be
disregarded and shall not be binding on the state.
2. "Purchasing Contract Authority" shall mean
the authority to act on behalf of the state to commit funds, enter into binding
agreements or contracts, dispose of state property, or in any other manner
control procurement or obligate the State.
a.
No state agency official shall have the right (capacity) to exercise purchasing
contract authority through written or oral agreements or contracts or, in any
other way, financially or otherwise obligate the State without the express
written consent of the Chief Purchasing Officer.
b. No state agency may place orders or
negotiate with suppliers or potential suppliers without the participation or
express approval of the Chief Purchasing Officer.
C. Under R.I. Gen. Laws §
37-2-13(4),
No state purchasing regulation shall change in any way a contract commitment by
the state nor of a contractor to the state which was in existence on the
effective date of the regulation.
D. Under R.I. Gen. Laws §
37-2-13(5),
The provisions of state purchasing regulations shall be considered to be
incorporated by operation of law in all state contracts.
E. Under R.I. Gen. Laws §
37-2-13(6),
Contract provisions and contracts entered into in violation of state purchasing
regulations shall be void "ab initio" [from inception].
F. Supplemental Principles of Law -
Obligation of Good Faith.
1. Under R.I. Gen.
Laws §
37-2-3(1)
Unless displaced by the particular provisions of this chapter the principles of
law and equity, including the uniform commercial code, the law merchant, and
the law of contracts, including, but not limited to, agency, fraud,
misrepresentation, duress, coercion, mistake, and bankruptcy, shall supplement
these provisions.
2. Under R.I.
Gen. Laws §
37-2-3(2),
Every contract or duty under this chapter shall impose upon both parts the
obligation of good faith in its performance and/or enforcement. "Good faith"
shall mean honesty in fact in the conduct or transaction concerned and the
observance of reasonable commercial standards of fair dealing.
G. In accordance with R.I. Gen.
Laws §
37-2-9(p),
contractors must comply with state and federal Equal Opportunity requirements
for all contracts for supplies and services exceeding ten thousand dollars
($10,000). Failure to comply will be considered a substantial breach of
contract subject to penalties prescribed in regulations issued and administered
by the State Equal Opportunity Office and set forth herein.
H. Under R.I. Gen. Laws §
37-2-41,
Contractor's Bonds. - The provisions of R.I. Gen. Laws Chapter 37-12 shall
apply to all construction contracts awarded under this chapter.
1. "Performance Bond" shall mean a contract
of guaranty executed subsequent to award by a successful bidder to protect the
state from loss due to contractor inability to complete a contract.
2. R.I. Gen. Laws Chapter 37-12 requires that
every person awarded a public works contract shall furnish to the state good
and sufficient surety (performance bond) not less than fifty percent (50%) and
not more than one hundred percent (100%) of the contract price conditioned that
the contractor, principal in said bond, the person's executors, administrators
or successors, shall keep and perform the covenants, conditions and agreements
in the contract. However, provided that good cause is shown, the Director of
the Department of Administration may waive the requirements for contracts not
in excess of fifty thousand dollars ($50,000).
3. In accordance with R.I. Gen. Laws §
37-13-14 a
contractor's performance bond required for contracts exceeding one thousand
dollars ($1000) under R.I. Gen. Laws Chapter 37-12 must be furnished by a
surety company authorized to do business in the state.
