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S977Senate2013-2014 Session

Requires public contracts to include a clause authorizing contractors to recover damages for delay for itself as well as on behalf of subcontractors or materialmen

Sponsor Tom LibousSD-52Affects Finance
Status
In Senate Committee
Finance
Impact
Pending
Passage
Pending

Bill progress

Step 2 of 7

In committee · Finance

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Sponsors

Primary sponsor
Tom Libous

Senator · Senate District 52

No co-sponsors yet.

History

  1. Referred to finance
  2. Returned to senate
  3. Died in assembly
  4. Referred to governmental operations
  5. Delivered to assembly
  6. Passed senateVote 59–4
  7. Advanced to third reading
  8. 2nd report cal.
  9. 1st report cal.517
  10. Referred to finance

Full text

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

Sponsor's memo

BILL NUMBER:S977

Title of bill

An act to amend the state finance law, in relation to damages for delay clauses in public contracts

Purpose

Requires all public contracts to include a clause authorizing contractors to recover damages for delay

Summary of provisions

Section 1 of this bill amends the State Finance Law by adding a new section 138-b which would provide that all public works contracts include provisions that a contractor, subcontractor, or materialman may seek recovery for unanticipated costs due to inexcusable delays which are the result of actions or omissions by a public contractor. The act or omission must be within the scope of their responsibility or control.

Justification

Current case law in New York State follows KALISCH-JARCHO, INC. V. CITY OF NEW YORK (578 NY 2nd 377), which allows a contractor to recover damages for such delay caused by an owner only where the owner acted in bad faith and with deliberate intent. In fact, the burden of proof to establish bad faith and deliberate intent makes it unlikely that contractors would be able to recover damages for delay.

Several public agencies (NYS OGS, DOT and the MTA) have already recognized the unfairness of this restriction and have provided in their public contracts for a more equitable allowance for damages for delays resulting from public agency action.

In 1998, the Governor vetoed S.6711-B, a proposal to achieve the same relief sought by this legislation. In his veto message (see Veto Message 1404), the Governor stated that he was sympathetic to the concept and that the policies of NYS OGS and DOT were already directed to address the needs sought here. This bill addresses the issues raised by the Governor and clarifies liability for damages where actions or omissions of a public agency are directly associated with the damages incurred by a covered contractor.

Legislative history

2012: Rules 2010: Referred to Finance 2008: Rules 2007: Passed Senate 2006: Passed Senate 2005: Passed Senate 2004: Rules 2003: Finance 1998: (Veto 1404)

Fiscal implications

Unknown.

Effective date

180 days after enactment.

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