OWNER DIRECT PURCHASES. As authorized by Florida Statutes § 212.08(6), Florida Administrative Code § 12A-1.094, and Florida Department of Revenue Tax Information Publication 13A01-01, the Owner reserves the right to require the Contractor to assign some or all of its subcontracts or other agreements with material suppliers directly to the Town. This process will be referred to as Owner Direct Purchases (ODP) and is a method that may be utilized to create savings for the Owner. The Owner saves the amount of the sales tax when it purchases material/equipment required for a construction project directly from the manufacturer/supplier (material/equipment cost only), and simultaneously decreases the amount of the contract for the cost of the materials/equipment plus the sales tax. If the Owner elects to invoke this process, the contract cost reduction will be accomplished through the issuance of a deductive change order.
OWNER DIRECT PURCHASES. Design Builder will develop and implement procedures to accommodate Owner Direct Purchases so that Owner can take advantage of Owner’s tax exempt status for all materials and equipment exceeding $5,000.00. This includes identification, tracking and coordination with Subcontractors. Design Builder will estimate the Owner Direct Purchases at the time the Guaranteed Maximum Price is submitted, so that the amount can be deducted from the Purchase Order to the Design Builder.
OWNER DIRECT PURCHASES. 48.1 The City reserves the right to require the Contractor to assign some or all of its subcontracts or other agreements with material, including equipment, and suppliers directly to the City. Any materials purchased by the City pursuant to such an assignment of a material supply subcontract or agreement shall be referred to as "Owner Direct Purchases" (ODP) and the responsibilities of both the City and the Contractor relating to such ODP shall be governed by the terms and conditions of this clause, which shall take precedence over other conditions and terms of the Contract Documents where inconsistencies or conflicts exist.
OWNER DIRECT PURCHASES. The CITY reserves the right to issue CITY Purchase Orders directly to suppliers of materials to be incorporated into the Work of Project as described in the Contract, in order to obtain the exemption from sales taxes available under Fla. Stat. § 212.08(6), in accordance with the procedures listed below. For purposes of this Policy, the term, “materials,” means all items of tangible personal property which CITY may be eligible to directly purchase tax free in accordance with Fla. Stat. § 212.08(6), and implementing administrative regulations; and all other terms will have the meaning provided or suggested in the Contract, where applicable.
