Bill S2404-2013

Authorizes contractors or subcontractors to postpone commencing work until proposed changes exceeding 10% of the original contract are approved by the public owner

Authorizes contractors or subcontractors to postpone commencing work until proposed changes exceeding 10% of the original contract have been approved by the public owner.

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Actions

  • Jan 8, 2014: REFERRED TO FINANCE
  • Jun 21, 2013: COMMITTED TO RULES
  • Mar 24, 2013: ADVANCED TO THIRD READING
  • Mar 21, 2013: 2ND REPORT CAL.
  • Mar 20, 2013: 1ST REPORT CAL.268
  • Jan 17, 2013: REFERRED TO FINANCE

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Memo

BILL NUMBER:S2404

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 subdivision 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 when 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 subdivision 5 of Section 139-f of the state finance law provides 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 subdivision 4 of the general municipal law provides 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: 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 no-payment. This bill addresses this issue. The State of Connecticut enacted similar legislation in 2009.

PRIOR LEGISLATIVE HISTORY: 2012: A.5412-A - died in Governmental Operations/S.3414-A - Passed Senate.

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.


Text

STATE OF NEW YORK ________________________________________________________________________ S. 2404 A. 2610 2013-2014 Regular Sessions S E N A T E - A S S E M B L Y January 17, 2013 ___________
IN SENATE -- Introduced by Sen. KLEIN -- read twice and ordered printed, and when printed to be committed to the Committee on Finance IN ASSEMBLY -- Introduced by M. of A. CUSICK, ROBINSON -- read once and referred to the Committee on Governmental Operations AN ACT to amend the state finance law and the general municipal law, in relation to contract change orders THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 139-f of the state finance law is amended by adding a new subdivision 5 to read as follows: 5. IF AT ANY TIME DURING THE CONSTRUCTION PERIOD, THE TOTAL COST OF ALL UNAPPROVED CHANGE ORDERS, CHANGE DIRECTIVES AND CONTRACT AMENDMENTS EXCEED TEN PERCENT OF THE ORIGINAL CONTRACT OR SUBCONTRACT, THE CONTRAC- TOR IN THE CASE OF THE ORIGINAL CONTRACT OR SUBCONTRACT, OR SUBCONTRAC- TOR IN THE CASE OF THE SUBCONTRACT, SHALL NOT BE REQUIRED TO COMMENCE OR CONTINUE SUCH WORK UNTIL THE PROPOSED CHANGES OR AMENDMENTS HAVE BEEN APPROVED BY THE PUBLIC OWNER. S 2. Section 106-b of the general municipal law is amended by adding a new subdivision 4 to read as follows: 4. IF AT ANY TIME DURING THE CONSTRUCTION PERIOD, THE TOTAL COST OF ALL UNAPPROVED CHANGE ORDERS, CHANGE DIRECTIVES AND CONTRACT AMENDMENTS EXCEED TEN PERCENT OF THE ORIGINAL CONTRACT OR SUBCONTRACT, THE CONTRAC- TOR IN THE CASE OF THE ORIGINAL CONTRACT OR SUBCONTRACT, OR SUBCONTRAC- TOR IN THE CASE OF THE SUBCONTRACT, SHALL NOT BE REQUIRED TO COMMENCE OR CONTINUE SUCH WORK UNTIL THE PROPOSED CHANGES OR AMENDMENTS HAVE BEEN APPROVED BY THE PUBLIC OWNER. S 3. This act shall take effect immediately and shall apply to all contracts executed on and after such date.

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