senate Bill S3414A

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

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 18 / Feb / 2011
    • REFERRED TO FINANCE
  • 24 / May / 2011
    • 1ST REPORT CAL.852
  • 25 / May / 2011
    • 2ND REPORT CAL.
  • 01 / Jun / 2011
    • ADVANCED TO THIRD READING
  • 06 / Jun / 2011
    • AMENDED ON THIRD READING 3414A
  • 13 / Jun / 2011
    • PASSED SENATE
  • 13 / Jun / 2011
    • DELIVERED TO ASSEMBLY
  • 13 / Jun / 2011
    • REFERRED TO GOVERNMENTAL OPERATIONS
  • 04 / Jan / 2012
    • DIED IN ASSEMBLY
  • 04 / Jan / 2012
    • RETURNED TO SENATE
  • 04 / Jan / 2012
    • REFERRED TO FINANCE
  • 20 / Mar / 2012
    • 1ST REPORT CAL.386
  • 21 / Mar / 2012
    • 2ND REPORT CAL.
  • 22 / Mar / 2012
    • ADVANCED TO THIRD READING
  • 18 / Apr / 2012
    • PASSED SENATE
  • 18 / Apr / 2012
    • DELIVERED TO ASSEMBLY
  • 18 / Apr / 2012
    • REFERRED TO GOVERNMENTAL OPERATIONS

Summary

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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Bill Details

See Assembly Version of this Bill:
A5412A
Versions:
S3414
S3414A
Legislative Cycle:
2011-2012
Current Committee:
Law Section:
State Finance Law
Laws Affected:
Amd §139-f, St Fin L; amd §106-b, Gen Muni L

Sponsor Memo

BILL NUMBER:S3414A

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:
New bill.

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.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

    S. 3414--A                                            A. 5412--A
    Cal. No. 852

                       2011-2012 Regular Sessions

                      S E N A T E - A S S E M B L Y

                            February 18, 2011
                               ___________

IN SENATE -- Introduced by Sen. KLEIN -- read twice and ordered printed,
  and  when  printed  to  be  committed  to  the Committee on Finance --
  reported favorably from said committee, ordered to  first  and  second
  report,  ordered  to  a  third reading, amended and ordered reprinted,
  retaining its place in the order of third reading

IN ASSEMBLY -- Introduced by M. of A. CUSICK,  ROBINSON  --  Multi-Spon-
  sored  by  --  M.  of  A.  P. RIVERA  -- read once and referred to the
  Committee on Governmental Operations  --  committee  discharged,  bill
  amended,  ordered reprinted as amended and recommitted to said commit-
  tee

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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00003-02-1

S. 3414--A                          2                         A. 5412--A

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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