§ 16-108. Types of contracts permitted.

(a)

Any type of contract which will promote the best interest of the town may be used, subject to the following limitations:

(1)

The use of a cost-plus-a-percentage-of-cost contract is prohibited except in case of emergency affecting the public health, safety or welfare. A policy or contract of insurance or prepaid coverage having a premium computed on the basis of claims paid or incurred, plus the insurance carrier's administrative costs and retention stated in whole or in part as a percentage of such claims, shall not be prohibited by this section.

(2)

A cost reimbursement contract may be used only when a determination is made in writing that such a contract is likely to be less costly to the town than any other type or that it is impracticable to obtain the supplies, services or construction required except under such a contract.

(b)

The town may award incentive contracts. The fee, if any, charged by the project engineer or architect for determining cost savings shall be paid as a separate cost and shall not be calculated as part of any cost savings.

Editor's note— Similar provisions, Code of Virginia, § 2.2-4331.

Editor's note

Similar provisions, Code of Virginia, § 2.2-4331.