Exhibit 2 - Contract Discrepancy Notice.docx

This is an Exhibit 2 Contract Discrepancy Notice template document used by Idaho Transportation Department (ITD) for monitoring contractor performance. The document serves as a formal mechanism for ITD to identify and communicate compliance issues with contractors on state contracts. The notice distinguishes between two types of items: Discrepancies, which require mandatory contractor response and corrective action, and Observations, which flag potential future compliance concerns but do not require formal response unless specifically noted. The template is designed to document specific instances of non-compliance by referencing the relevant contract sections, describing the nature of the discrepancy in detail with supporting documentation such as photos, and requiring the contractor to propose corrective actions with estimated resolution dates.

The document establishes a structured review and approval process whereby ITD contract monitors evaluate contractor-proposed resolutions and indicate acceptance, partial acceptance, or rejection of the proposed corrective actions. The contractor must formally acknowledge their understanding of identified discrepancies and their responsibility for resolution by signing the notice. Upon successful completion of corrective actions, the ITD contract monitor signs off on the resolution. This template reflects a performance management approach that emphasizes documented communication, traceable compliance monitoring, and formal verification of contractor remediation efforts throughout the contract term.