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9.15         Construction  

                A.     Change Orders  

1.        Upon recommendation of the architect or engineer, the university may authorize or submit to the Board Office for approval change orders to the construction contract.  

2.        All change orders shall be submitted on standard change order forms and shall be accompanied by an explanation of the reason for the change.  

3.        Approval of change orders shall be as provided in Section 9.09B of this Manual.  

4.        Change orders approved by the university shall be reported to the Board Office.  

5.        Contract change orders requiring approval of the Board Office shall not be signed by the chief business officer until approved.  

    B.     Retention from Payments on Contracts  

1.        Retention from payments to construction contractors are governed by provisions of Iowa Code, including Chapter 262 and 573.  

2.        Iowa Code provides for prompt payment by the contractor to its subcontractors.  

            C.  Iowa State Sales Tax on Construction Projects   

1.     The services and materials furnished as part of Regent construction projects are generally exempt from state sales tax.

2.      Iowa Code provides two options to deal with Iowa state sales tax on Regent construction projects.  

a.       Regent universities may issue exemption certificates to contractors and subcontractors allowing them to purchase, or withdraw from inventory, building materials for the contract free from Iowa sales tax following Department of Revenue procedures, or  

b.      The contractor pays Iowa sales tax on all building materials and includes that cost in the bid; the contractor then submits Department of Revenue forms to the Regent university to document the amount of Iowa sales tax paid on the construction materials incorporated into the real property.  The Regent university would then apply for a refund of the Iowa sales tax following Department of Revenue procedures.  

c.       The Conditions of the Contract for all Regent construction projects shall identify whether exemption certificates will be issued.