Exhibit 2 - Contract Discrepancy Notice.docx

This document is a Contract Discrepancy Notice template issued by Idaho Transportation Department (ITD) for use in monitoring contractor performance on state contracts. The notice serves as a formal mechanism for ITD to communicate performance deficiencies to contractors, requiring corrective action on items classified as "Discrepancies" while noting areas of concern designated as "Observations" that do not mandate a response unless specifically indicated. The template provides structured sections for ITD to document the nature of non-compliance, reference relevant contract provisions, specify required corrective actions, and establish timelines for resolution. Contractors are required to acknowledge receipt of the notice, describe their proposed corrective actions, and provide estimated resolution dates. The document includes signature lines for both ITD contract monitors and contractors, with separate sections for documenting acceptance, partial acceptance, or rejection of proposed resolutions and a final verification section confirming resolution completion.

The discrepancy notice process establishes clear accountability mechanisms between ITD and contractors regarding contract compliance obligations. The template allows for attachment of supporting documentation such as photographs or reference materials to substantiate identified deficiencies. The document accommodates multiple discrepancies through additional table insertions and distinguishes between mandatory corrective actions and voluntary improvement opportunities, providing flexibility in performance management while maintaining contractual oversight. Anticipated follow-up dates are established to ensure timely resolution tracking, and ITD contract monitors retain authority to evaluate contractor responses and determine whether proposed corrective measures satisfy contractual requirements before marking discrepancies as resolved.