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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.

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Presentation on theme: "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."— Presentation transcript:

1 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

2 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.

3 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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