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History
- Referred to finance
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Relates to contract change orders
In Assembly Committee · Governmental Operations · Sponsor Michael Cusick
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the state finance law and the general municipal law, in relation to contract change orders
Purpose or general idea of bill
This bill adds a new subsection 5 to section 139-f of the state finance law and a new subsection 4 to section 106 b of the general municipal law to provide that (a) change orders exceeding the original public contract price shall be considered a new project and (b) when total unapproved change orders exceed 10% of the original contract, the contractor or subcontractor shall not be required to proceed with such change order work until it is approved by the owner
Summary of specific provisions
A new subsection 5 of Section 139 f of the state finance law provides (a) If at any time during the construction period, the total cost of all change orders, change directives and contract amendments shall exceed the original contract or subcontract price, such excess project work shall be considered a new and separate project subject to this Article 9 and (b) If at any time during the construction period, the total cost of all unapproved change orders, change directives and contract amendments exceed ten (10%) percent of the original contract or subcontract, the contractor or subcontractor, as the case may be, shall not be required to commence or continue such work until the proposed changes or amendments have been approved by the public owner.
A new subsection 4 of the general municipal law provides (a) If at any time during the construction period, the total cost of all change orders, change directives and contract amendments shall exceed the original contract or subcontract price, such excess project work shall be considered a new and separate project subject to this Article 5A and (b) If at any time during the construction period, the total cost of all unapproved change orders, change directives and contract amendments exceed ten (10%) percent of the original contract or subcontract, the contractor or subcontractor, as the case may be, shall not be required to commence or continue such work until the proposed changes or amendments have been approved by the public owner.
Justification
Change orders exceeding the original price of a public contract defeat the intent of the public bidding laws by denying contractors the right to bid for such work far in excess of the original contract price. Furthermore, contractors who are compelled to continue work on change orders while other change orders completed or being worked on have yet to be approved are placed at a disadvantage and risk of non-payment. This bill addresses both of these issues.
Prior legislative history
New bill.
Fiscal implications
None.
Effective date
This act shall take effect immediately and shall apply to all contracts executed on and after the date of this act.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.