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Section 4: Supplemental Agreements

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Policy

A supplemental agreement (SA) is a formal agreement between the contracting parties amending the contract.

Use a SA to:

  • assign the contract changes from one entity to another
  • change the legal name of the contractor or
  • settle disputes involving a surety.

Send SAs with original signatures to the Construction Division (CST), Contract Letting & Contractor Prequalification Branch (CL&CP) for further handling.

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Assignments

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 the CST-CL&CP for approval. CST will:

  • prepare a supplemental agreement
  • send the supplemental agreement and bond forms to the contractor for execution
  • execute the supplemental agreement
  • notify the contractor, Finance Division (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.

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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-CL&CP for approval. CST will:

  • verify the legal filing of the name change
  • obtain administrative approval
  • prepare the supplemental agreement
  • obtain the executed agreement, insurance and applicable bonds in the new name of the contractor for construction contracts
  • send copies to the contractor, FIN, and the district.
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