(1) The rules of the applicable rulemaking authority shall require for state construction contracts, and may permit or require for contracts for supplies and services, the inclusion of clauses providing for adjustments in prices, time of performance, or other appropriate contract provisions, and covering the following subjects:

1. (a) the unilateral right of the procurement officer to order in writing changes in the work within the scope of the contract and changes in the time of performance of the contract that do not alter the scope of the contract work;
2. (b) variations occurring between estimated quantities of work in a contract and actual quantities;
3. (c) suspension of work ordered by the procurement officer; and

4. (d) site conditions differing from those indicated in the construction contract, or ordinarily encountered, except that differing site conditions clauses required by the rules need not be included in a construction contract when:

   1. (i) the contract is negotiated;
   2. (ii) the contractor provides the site or design; or
   3. (iii) the parties have otherwise agreed with respect to the risk of differing site conditions.

(2) Adjustments in price pursuant to clauses described in Subsection (1) shall be computed in one or more of the following ways:

1. (a) by agreement on a fixed price adjustment before commencement of the pertinent performance or as soon thereafter as practicable;
2. (b) by unit prices specified in the contract or subsequently agreed upon;
3. (c) by the costs attributable to the events or situations under the clauses with adjustment of profit or fee, all as specified in the contract or subsequently agreed upon;
4. (d) in any other manner as the contracting parties may mutually agree; or
5. (e) in the absence of agreement by the parties, by a unilateral determination by the procurement officer of the costs attributable to the events or situations under the clauses with adjustment of profit or fee, all as computed by the procurement officer in accordance with applicable rules and subject to the provisions of Part 17, Procurement Appeals Board, and Part 18, Appeals to Court and Court Proceedings.

(4) The rules of the applicable rulemaking authority shall require for construction contracts, and may permit or require for contracts for supplies and services, the inclusion of clauses providing for appropriate remedies and covering at least the following subjects:

1. (a) liquidated damages as appropriate;
2. (b) specified excuses for delay or nonperformance;
3. (c) termination of the contract for default; and
4. (d) termination of the contract in whole or in part for the convenience of the procurement unit.

(5) The contract clauses described in this section shall be established by rule. However, the procurement officer or the head of an issuing procurement unit may modify the clauses for inclusion in any particular contract. The applicable rulemaking authority may, by rule, require that:

1. (a) variations be supported by a written determination that describes the circumstances justifying the variations; and
2. (b) notice of any material variation shall be included in the invitation for bids or request for proposals.

(6) A contract for construction entered into by a procurement unit shall contain a clause that addresses the rights of the parties when, after the contract is executed, site conditions are discovered that:

1. (a) the contractor did not know existed, and should not have known existed, at the time that the contract was executed; and
2. (b) materially impacts the costs of construction.