R634-2-4. Applicability of Rule

  (1) Except as provided in Subsections R634-2-4(2) or R634-2-4(3) below, Rule R634-2 applies to all design or construction contracts entered into by the Department, and

  (a) applies to a prime contractor if the prime contract is in the amount of $2,000,000 or greater at the original execution of the contract; and

  (b) applies to a subcontractor if the subcontract is in the amount of $1,000,000 or greater at the original execution of the contract.

  (2) Rule R634-2 does not apply if:

  (a) the application of Rule R634-2 jeopardizes the receipt of federal funds;

  (b) the contract is a sole source contract; or

  (c) the contract is an emergency procurement.

  (3) Rule R634-2 does not apply to a change order as defined in Section 63G-6a-103, or a modification to a contract, when the contract does not meet the initial threshold required by Subsection R634-2-4(1).

  (4) A person who intentionally uses change orders or contract modifications to circumvent the requirements of Subsection R634-2-4(1) is guilty of an infraction.