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

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.

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.