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S1216Senate2013-2014 SessionSame asA528

Relates to the unenforceability of a contract clause requiring a contractor or subcontractor to continue unapproved or disputed work

Sponsor John A. DeFranciscoSD-50Affects Legal
Status
In Assembly Committee
Judiciary
Impact
Pending
Passage
Pending

Bill progress

Step 5 of 7

In Assembly · Judiciary

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Sponsors

Primary sponsor
John A. DeFrancisco

Senator · Senate District 50

Chair, Finance

No co-sponsors yet.

History

  1. Referred to judiciary
  2. Delivered to assembly
  3. Passed senateVote 59–0
  4. Advanced to third reading
  5. 2nd report cal.
  6. 1st report cal.106
  7. Referred to judiciary
  8. Returned to senate
  9. Died in assembly
  10. Referred to judiciary
  11. Delivered to assembly
  12. Passed senateVote 56–1
Show 4 earlier actions
  1. Advanced to third reading
  2. 2nd report cal.
  3. 1st report cal.296
  4. Referred to judiciary

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.

A528Assembly

Relates to the unenforceability of a contract clause requiring a contractor or subcontractor to continue unapproved or disputed work

In Assembly Committee · Judiciary · Sponsor Michael Cusick

Full text

The text isn't available here yet. Check nysenate.gov.

Sponsor's memo

BILL NUMBER:S1216

Title of bill

An act to amend the general obligations law, in relation to the unenforceability of a contract clause requiring a contractor or subcontractor to continue unapproved or disputed work

Purpose

To forbid agreements in construction contracts which require contractors or subcontractors to commence or continue unapproved or disputed work.

Summary of specific provisions

Section 5-322.1 of the General Obligations Law is amended to declare void and unenforceable construction contract provisions which require contractors or subcontractors to commence or continue unapproved or disputed work.

Justification

Contract clauses which require subcontractors to commence or continue work on a project notwithstanding that the work is in dispute or not yet approved by the owner puts the subcontractor at risk of not being paid for the work he or she completes. These clauses are found in many construction contracts and are the cause of unnecessary and costly litigation and arbitration. This bill endeavors to cure this problem by making such clauses void and unenforceable. Contractors and subcontractors who refuse to commence or continue, unapproved or disputed work will no longer be liable for delay damages due to their refusal. The bill will also provide an incentive for owners to settle disputes and process change orders.

Legislative history

S.6057/A.8856 of 2011-2012

Fiscal implications

None

Effective date

This act shall take effect immediately and shall apply to all contracts executed on and after the effective date.

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.