Section 4: Supplemental Agreements
A supplemental agreement (SA) is a formal agreement between the contracting parties amending the contract.
Use SAs to:
- Anchor: #FSRCRSAP
- assign the contract changes from one entity to another Anchor: #FFPSHXKH
- change the legal name of the contractor, or Anchor: #AQEYDEHQ
- settle disputes involving both Surety and original contractor.
Coordinate SAs with CST.Anchor: #b070008
Do not allow the contractor to assign, sell, transfer, or otherwise dispose of the contract or any portion rights, title or interest (including claims) without the approval of the Commission or designated representative.
Submit assignment requests received from the contractor to CST for approval. CST will:
- Anchor: #SLRFOLWR
- ensure the new contractor is prequalified and has the necessary bidding capacity, Anchor: #CSEYYUGI
- coordinate General Counsel Division (GCD) review and approval, Anchor: #QJKGUQBP
- prepare a supplemental agreement, Anchor: #PICQBYBT
- send the supplemental agreement and bond forms to the contractor for execution, Anchor: #RNYHWPMO
- execute the supplemental agreement, and Anchor: #LLMYWNQE
- notify the contractor, FIN, and the District.
Ensure the new contractor provides the standard project information and forms (payroll clerk, etc.). Do not alter any other terms and conditions of the contract or suspend time during the assignment process.Anchor: #b070010
Change the Legal Name of the Contractor
When a contractor changes its legal name, they must advise the Department so that any incomplete contract may be modified to reflect the new legal name. A supplemental agreement is used to accomplish the modification of the contract.
Submit name change requests received from the contractor to CST for approval. CST will:
- Anchor: #NSKJWHQO
- verify the legal filing of the name change, Anchor: #DFMIMUFE
- obtain administrative approval, Anchor: #KCMGENEH
- prepare the supplemental agreement, Anchor: #KFHITFXD
- obtain the executed agreement, insurance, and applicable bonds in the new name of the contractor for construction contracts, and Anchor: #BUGVHPFM
- send copies to the contractor, FIN, and the District.