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History
- Referred to corporations, authorities and commissions
Companion bill
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Requires transparent methods of subcontracting by general contractors who enter public work contracts with the New York state dormitory authority
In Assembly Committee · Ways And Means · Sponsor Richard Brodsky
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the public authorities law, in relation to transparent methods of subcontracting by general contractors who enter public work contracts with the New York state dormitory authority
Purpose or general idea of bill
This bill will provide legal transparency and strengthen the subcontracting regulations by general contractors who bid on for contracts with the New York State Dormitory Authority.
Summary of specific provisions
Amends §1676-a and §1678 of New York state Public Authorities Law to institute more stringent restrictions on the methods by which general contractors can responsibly subcontract.
Justification
It is the job of the New York State to ensure that taxpayer dollars are properly spent and that projects bid out to contractors are handled efficiently and effectively once the contracts have been approved. There is an ethical problem with bid shopping and peddling in which the general contractor changes subcontractors after a bid has been approved, usually for a lower price. This allows for the general contractor to pocket the difference and often results in a lower quality end product.
Recently, this issue has come to the forefront in two projects whose contractual bidding was under the auspices of the New York State Dormitory Authority where the general contractor had prepared the bid with one subcontractor in mind but eventually used another, cheaper contractor for the work. This legislation seeks to combat this unethical behavior by requiring the Dormitory Authority to be provided with a list of subcontractors upon receipt of a bid. Should the contract be approved the contractor may not substitute subcontractors with certain exceptions.
Similar legislation has been in effect for a number of years in other states, including wisconsin, Washington, North Carolina and Oregon. This legislation will save the taxpayers money by ensuring that projects contracted out to other entities will be completed as first proposed, and so that contractors will not profit from poor quality workmanship.
Prior legislative history
New Bill.
Fiscal implications
This bill will have a positive fiscal impact on taxpayers due to lowered contracting costs.
Effective date
The act will take effect 60 days before it shall become law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.