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Published byChristina Holmes Modified over 9 years ago
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Contracts After the Effective Date Contract Law does not require a contract to be in writing Oral Agreement (Man of his word) OSBM states that contract must be executed prior to payment OPCS policy regarding contracts after the effective date is just that…a policy…not law, but is best practice to protect the interest of the state
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Contracts After the Effective Date Audit Exception (no teeth in it) Who’s Authorized to approve a verbal contract whereby work is done without a contract? Who Assumes the Risk? Contracts signed after the effective date require approval from B&A before the controllers will pay the invoice.
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Risk Associated - Working Without a Contract Any assurances by the division to the contractor are outside of their legal authority and therefore not binding. The contractor is acting at their own risk when working without a contract. Any assurances by the division to the contractor are outside of their legal authority and therefore not binding. If a dispute arises between the start of performance and the signing of the contract, there is nothing to use to resolve it. A contract contains protections for both parties – the division and contractor. If there’s work and no fully executed contract, neither one of them has those protections. Also, by statute, anyone spending money for a purpose other than for which it was appropriated may be held personally liable for the sum so spent.
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