What's happening
This bill requires state contracts to allow contractors to claim additional costs for project delays caused by state agencies.
Why it matters
Shifts financial risk for delays. By allowing contractors to claim extra costs for specific delays caused by state agencies, the bill shifts some financial responsibility for project overruns from private contractors to the state, potentially making state agencies more accountable for project management.
Defines and limits valid claims. The bill carefully restricts the types of delays that qualify for additional compensation—only those caused by state agency failures, extended review times, or site unavailability—reducing the chance of frivolous or overly broad claims.
Imposes strict documentation and notice requirements. Contractors must provide detailed, timely written notice and keep comprehensive records to support their claims. Missing these requirements results in waiving the claim, encouraging professional standards and minimizing disputes.
May impact bidding and project costs. By clarifying when and how contractors can recover costs for state-caused delays, the bill could lead to more accurate bids, reduce contractors’ need to inflate prices as a hedge against risk, and potentially affect the pool of contractors willing to work on state projects.
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Who cares
Public works contractors
The bill would require state contracts to allow claims for additional costs from specified delays caused by a state agency’s material act or omission.
State agencies and public authorities
They would have to include delay-claim clauses in covered contracts and acknowledge receipt of contractors’ claim notices in writing within five days.
Public works design firms
Agreements for public works design would be covered, with claims limited to specified coordination failures, agency review or order delays, and extended site unavailability.
Contractors’ claims and accounting teams
Contractors would have to give written notice within fifteen days of knowing the facts underlying a claim and maintain and furnish detailed cost records, or waive the claim.
Headline styles
Allow Contractors Delay Claims
Plain English, a few words. Used as the page title.
Sponsors
Assembly Member · Assembly District 40
No co-sponsors yet.
History
- Referred to governmental operations
- Referred to governmental operations
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7985
2019-2020 Regular Sessions
IN ASSEMBLY
May 30, 2019
Introduced by M. of A. KIM -- read once and referred to the Committee on Governmental Operations
AN ACT to amend the state finance law, in relation to damages to contracts occasioned by delay
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The state finance law is amended by adding a new section 138-b to read as follows:
§ 138-b. Damages occasioned by delay. 1. For purposes of this section the following terms shall have the following meanings:
(a) "State agency" shall mean all entities as defined in section one hundred seventy-nine-e of this chapter and subdivision one of section two of the public authorities law.
(b) "Contract" shall mean any agreement awarded by a state agency for the design, construction, reconstruction, demolition, alteration, repair or improvement of any public works project.
(c) "Delay" shall mean any delay, disruption, interference, inefficiencies, impedance, hindrance or acceleration in the performance of the contract which causes damages to be incurred by a contractor.
(d) "Claim" shall mean a request for additional costs only from the following causes:
(i) the failure of the state agency to take reasonable measures to coordinate and progress the work;
(ii) extended delays attributable to the state agency in the review or issuance of orders-on-contract or field orders, in shop drawing reviews and approvals or as a result of the cumulative impact of multiple orders on contract, which constitute a qualitative change to the project work and which have a verifiable impact on project costs; or
(iii) the unavailability of the site for such an extended period of time which significantly affects the scheduled completion of the contract.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11735-02-9
A. 7985 2
2. All contracts made and awarded shall contain a clause which allows a contractor to make a claim for additional costs arising from delay in the performance of a contract if such delay is caused by a material act or omission of the state agency.
3. The contractor shall provide a notice of claim of an anticipated claim for delay to a state agency by personal service or certified mail no more than fifteen days after such contractor knew the facts which form the basis of the claim. The state agency shall acknowledge receipt of the notice, in writing, within five days. Such notice shall at a minimum provide a description of any operations that were, are being or will be delayed, and the date or dates and reasons for the delay. In no case shall oral notice constitute notice pursuant to this section or be deemed to constitute a waiver of the written notice requirement. For the purposes of this section, failure to provide such notice shall be considered to have prejudiced the state agency.
4. Failure by a contractor to adequately progress the completion of work shall be considered in determining the causes of delay. For any claim asserted pursuant to this title, the contractor shall keep detailed written records of the costs and shall make them available for the purposes of audit and review. Failure to provide the required written notice or to maintain and furnish records of the costs of such claims shall constitute a waiver of the claim.
5. The following information shall be provided by the contractor upon request of a state agency if not previously supplied:
(a) a description of the operations that were delayed, the reasons for the delay and an explanation of how they were delayed;
(b) a detailed factual statement of the claim providing all necessary dates, locations and items of work affected by the claim;
(c) the date on which actions resulting in the claim occurred or conditions resulting in the claim became evident;
(d) the names, functions and activities of each contractor involved in, or knowledgeable about facts that gave rise to such claim;
(e) the identification of any pertinent documents, and the substance of any material oral communication relating to such claim;
(f) the amount of additional compensation sought; and
(g) if an extension of time is also requested, the specific number of days for which it is sought and the basis for such request as determined by an analysis of the construction progress schedule.
6. When submitting any claim, the contractor shall certify in writing and under oath that the supporting data is accurate and complete to his or her best knowledge or belief, and that any amount demanded reflects, in good faith, what he or she believes to be the state agency's liability.
§ 2. This act shall take effect on the one hundred eightieth day after it shall have become a law and shall apply to all contracts entered into on and after such date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.