Section 4: Supplemental Agreements
A supplemental agreement (SA) is a formal agreement between the contracting parties amending the contract.
Use SAs to:
- assign the contract changes from one entity to another
- change the legal name of the contractor, or
- settle disputes involving both Surety and original contractor.
Coordinate SAs with CST.
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
CST for approval. CST will:
- ensure the new contractor is prequalified and has the necessary bidding capacity,
- coordinate General Counsel Division (GCD) review and approval,
- prepare a supplemental agreement,
- send the supplemental agreement and bond forms to the contractor for execution,
- execute the supplemental agreement, and
- 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.
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:
- 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, and
- send copies to the contractor, FIN and the District.