Under the authority of Section 1 and Section 24 of Article III of the Constitution of the State of Alaska, I hereby order that in all future contracts entered into or approved by the State of Alaska for its officers or agents for the construction of State highways, airports, airfields, buildings, or other physical, capital, or structural improvements, the contractor shall be required to accept as a condition of being awarded such a contract the following clause which shall be set forth in each construction contract:

PAYMENT OF TAXES. As a condition of performance of this contract, the contractor shall pay all state, local, and federal taxes incurred by the contractor in the performance of this contract. Proof of payment of these taxes is a condition precedent to final payment by the State under this contract.

I further order, that Administrative Order No. 7 be immediately repealed, and that this Administrative Order take effect immediately.

DATED at Juneau, Alaska, this 6th day of September, 1977.

S/S Jay S. Hammond
Jay S. Hammond  
Governor of Alaska