(a) Contract Clauses. The Policy Office shall promulgate regulations requiring the inclusion in Guam construction contracts of clauses providing for adjustments in prices, time of performance, or other contract provisions, as appropriate, and covering the following subjects:

(1) the unilateral right of Guam to order in writing:

(A) changes in the work within the scope of the contract;
and

(B) changes in the time of performance of the contract that do not alter the scope of the contract;

(2) variations occurring between estimated quantities of work in a contract and actual quantities;

(3) suspension of work ordered by Guam; and

(4) site conditions differing from those indicated in the contract, or ordinarily encountered, except that differing site conditions clauses promulgated by the Policy Office need not be included in a contract:

(A) when the contract is negotiated;

(B) when the contractor provides the site or design; or

(C) when the parties have otherwise agreed with respect to the risk of differing site conditions.

(b) Price Adjustments.

(1) Adjustments in price pursuant to clauses promulgated under Subsection (a) of this Section shall be computed in one or more of the following ways:

(A) by agreement on a fixed price adjustment before commencement of the pertinent performance or as soon thereafter as practicable;

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(B) by unit prices specified in the contract or subsequently agreed upon;

(C) by the costs attributable to the events or situations under such clauses with adjustment of profit or fee, all as specified in the contract or subsequently agreed upon;

(D) in such other manner as the contracting parties may mutually agree; or

(E) in the absence of agreement by the parties, by a unilateral determination by Guam of the costs attributable to the events or situations under such clauses with adjustment of profit or fee, all as computed by Guam in accordance with applicable sections of the regulations promulgated under Chapter 7 and subject to the provisions of Chapter 9 of this Chapter.

(2) A contractor shall be required to submit cost or pricing data if any adjustment in contract price is subject to the provisions of 5232 of this Chapter.

(c) Additional Contract Clauses. The Policy Office shall promulgate regulations requiring the inclusion in Guam construction contracts of clauses providing for appropriate remedies and covering the following subjects:

(l) liquidated damages as appropriate;

(2) specified excuses for delay or non-performance; (3) termination of the contract for default; and
(4) termination of the contract in whole or in part for the convenience of Guam.

(d) Modification of Required Clauses. The Director of Public Works or the head of a purchasing agency may vary the clauses promulgated by the Policy Office under Subsection (a) and Subsection (c) of this Section for inclusion in any particular territorial construction contract, provided, that any variations are supported by a written determination that states the circumstances justifying such variations, and provided, that notice of any such

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material variation be stated in the invitation for bids or request for proposals.

SOURCE: GC § 6968. MPC § 5-401.

COMMENT: See Official Comments.

2023 NOTE: References to “”Territory”” and “”territory”” replaced with
“”Guam”” pursuant to 1 Guam Code Ann. § 420.

2012 NOTE: Subsection designations were amended in subsections (a) an (b) to adhere to the Compiler’s alpha-numeric scheme in accordance with the authority granted by 1 Guam Code Ann. § 1606.