Kentucky Revised Statutes

Ky. Rev. Stat. § 45A.200 (2026)

Contract adjustment clauses -- Termination clause

✓ current as of May 2026

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(1) For all construction contracts expected to exceed fifty thousand dollars ($50,000) in price, the secretary of the Finance and Administration Cabinet shall specify clauses providing for adjustments to contract terms and conditions where there has been:

(a) A unilaterally ordered change by the Commonwealth; or

(b) A site condition differing from that indicated in the contract except for turnkey contracts or negotiated contracts when appropriate written findings of fact have been made; or

(d) A unilateral suspension of work by the Commonwealth.

(2) In addition, there shall also be specified for inclusion in all construction contracts expected to exceed fifty thousand dollars ($50,000) in price a clause providing that a contract may be terminated for the convenience of the Commonwealth or for default, and further providing for liquidated damages when appropriate and as specified in the contract schedule, with excuses for nonperformance specifically provided for therein.

(3) The above specified clauses and conditions required for inclusion in all construction contracts expected to exceed fifty thousand dollars ($50,000) in price shall be available for optional use in other construction contracts. Effective: January 1, 1979 History: Created 1978 Ky. Acts ch. 110, sec. 40, effective January 1, 1979.

Notes of Decisions

Cited in 2 cases, 2003–2014 · leading case: Ford Contracting, Inc. v. Kentucky Transp. Cabinet, 429 S.W.3d 397 (Ky. Ct. App. 2014).

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Ford Contracting, Inc. v. Kentucky Transp. Cabinet, 429 S.W.3d 397 (Ky. Ct. App. 2014). · cites it 2× “After hearing the conflicting evidence, the hearing officer found that the Department had not properly terminated the contract for convenience under KRS 45A.200(2). 7 Citing RAM Engineering & Construction, Inc.”

RAM Eng'g & Constr., Inc. v. Univ. of Louisville, 127 S.W.3d 579 (Ky. 2003). · cites it 2× “" KRS 45A.200(2). [1] I find it curious that the majority chooses to address this issue after holding that RAM was an indispensable party to the litigation between MAC and U of L.”

— Ky. Rev. Stat. § 45A.200(2) — 2 cases

Ford Contracting, Inc. v. Kentucky Transp. Cabinet, 429 S.W.3d 397 (Ky. Ct. App. 2014). “After hearing the conflicting evidence, the hearing officer found that the Department had not properly terminated the contract for convenience under KRS 45A.200(2). 7 Citing RAM Engineering & Construction, Inc.”

RAM Eng'g & Constr., Inc. v. Univ. of Louisville, 127 S.W.3d 579 (Ky. 2003). “" KRS 45A.200(2). [1] I find it curious that the majority chooses to address this issue after holding that RAM was an indispensable party to the litigation between MAC and U of L.”

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