senate Bill S7187B

Signed By Governor
2011-2012 Legislative Session

Confers authority on the state comptroller to verify and pay the claim of A. Servidone, Inc./B. Anthony Construction Corp., J.V. against the state of New York

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Sponsored By

Archive: Last Bill Status - Signed by Governor


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

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Actions

view actions (16)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jul 23, 2012 signed chap.266
Jul 20, 2012 delivered to governor
Jun 14, 2012 returned to senate
passed assembly
ordered to third reading rules cal.226
substituted for a9944a
Jun 13, 2012 referred to ways and means
delivered to assembly
passed senate
ordered to third reading cal.1246
committee discharged and committed to rules
Jun 07, 2012 print number 7187b
Jun 07, 2012 amend and recommit to finance
May 11, 2012 print number 7187a
amend (t) and recommit to finance
May 01, 2012 referred to finance

Votes

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Bill Amendments

Original
A
B (Active)
Original
A
B (Active)

Co-Sponsors

S7187 - Bill Details

See Assembly Version of this Bill:
A9944A
Law Section:
Comptroller

S7187 - Bill Texts

view summary

Confers authority on the state comptroller to verify and pay the claim of A. Servidone, Inc./B. Anthony Construction Corp., J.V. against the state of New York with respect to construction of a project known as the reconstruction and bridge replacement on Route 17 at Exit 122 in the Town of Wallkill, Orange County, New York.

view sponsor memo
BILL NUMBER:S7187

TITLE OF BILL:
An act
to confer authority on the state comptroller to verify and pay
the claim of A. Servidone,
Inc./B. Anthony Construction Corp., J.V. against the state of New York
with respect to
construction of a project known as the reconstruction and bridge
replacement on Route 17 at Exit
122 in the Town of Wallkill, Orange County, New York

PURPOSE OF BILL:
This bill would authorize the New York State Comptroller to audit and
pay the claims of a contractor who had done work for the State under
a contract with the New York State Department of Transportation and
whose contract, through no fault of the contractor, was declared
invalid in State Supreme Court.

SUMMARY OF PROVISIONS:
Section one states that the Legislature finds that A. Servidone,
Inc./B. Anthony Construction Corp., J.V. was engaged and authorized
by the State, acting by and through the New York Department of
Transportation, on or about October 6, 2011, to perform a construction
project known as the reconstruction and bridge replacement on Route
17 at Exit 122 in the Town of Wallkill, Orange County, New York
(NYDOT Contract No. 0261655).
The contractor proceeded to perform the work so contracted in good
faith and without wrongful intent and due to the decision by the
State Supreme Court has been unable to collect those monies owed by
virtue to the work performed prior to the decision by the Court.
Under present law, a court decision invalidating a contract means
that the contractor has no legal standing to sue to recover any
expenses.

Section two states that the New York State Comptroller is authorized
to verify the amounts submitted by A.
Servidone, Inc./B. Anthony Construction Corp., J.V. in its settlement of
claim and such other amounts that may be due or come due on account
of the cessation of work and approve payment of such claim. Section
two also states that payments of these claims shall be paid from
funds already allocated by the State for said construction project.

Section three states that this act shall take effect immediately.

JUSTIFICATION:
On or about October 6, 2011 the State of New York, through the New
York State Department of Transportation,
entered into a contract with A. Servidone, Inc./B. Anthony Construction
Corp., J.V. to perform a construction project known as the
reconstruction and bridge replacement on Route 17 at Exit 122 in the
Town of Wallkill.
The contractor had completed close to 10% of the project when the
State Supreme Court ruled the contract null and void due to no fault
of the contractor. During the construction phase of the contract,
under good faith and believing it had a valid contract with the


State, the contractor purchased materials, completed various work on
the project and entered into contracts with various subcontractors.
When the Supreme Court made its ruling it left A.
Servidone, Inc./B. Anthony Construction Corp., J.V. without any means to
collect payment from the State for work performed. Under present law,
a court decision invalidating a contract means that the contractor
has no legal standing to sue to recover any expenses. This bill
simply allows a contractor to collect expenses incurred on a
construction job that they rightfully started under a contract with
the State. The money owed to the contractor would not be a new
allocation and would come from the funds that have been already
allocated by the State for the project. This bill simply allows for
the fair and equitable resolution of this issue and makes sure that a
New York State business, which relied on the State, is fairly
compensated for expenses incurred.

PRIOR LEGISLATIVE HISTORY:
Although this is a new bill, there has been legislation passed in
prior years which protected contractor's claims when the contract
that they have relied on in good faith has been invalidated by the
courts.

FISCAL IMPLICATION:
None. All money expended would come from current allocations by the
State for the Exit 22 construction project.

EFFECTIVE DATE:
This act shall take effect Immediately.

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

                                  7187

                            I N  S E N A T E

                               May 1, 2012
                               ___________

Introduced  by  Sen. BONACIC -- read twice and ordered printed, and when
  printed to be committed to the Committee on Finance

AN ACT to confer authority on the state comptroller to  verify  and  pay
  the  claim  of  A. Servidone, Inc./B. Anthony Construction Corp., J.V.
  against the state of New  York  with  respect  to  construction  of  a
  project known as the reconstruction and bridge replacement on Route 17
  at Exit 122 in the Town of Wallkill, Orange County, New York

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The legislature finds that A. Servidone, Inc./B.    Anthony
Construction Corp., J.V. was engaged and authorized by the state, acting
by  and  through  the New York State Department of Transportation, on or
about October 6, 2011, to perform a construction project  known  as  the
reconstruction  and  bridge  replacement  on Route 17 at Exit 122 in the
Town of Wallkill, Orange County, New York (NYSDOT Contract No. D261655),
and having commenced performance and making  substantial  progress,  the
contractor  is  threatened  by financial loss, by reason of the Decision
and Order issued by the Supreme Court dated March 1, 2012 in  which  the
construction  contract  was found to be a nullity. A. Servidone, Inc./B.
Anthony Construction Corp., J.V. made  purchases  and  executed  subcon-
tracts  and purchase orders in furtherance of the project. It is further
found that  A.  Servidone,  Inc./B.  Anthony  Construction  Corp.,  J.V.
undertook  and  executed  the  aforesaid  work in good faith and without
wrongful intent and that by virtue of the benefits received by the state
and  the  consideration  rendered  by  A.  Servidone,  Inc./B.   Anthony
Construction  Corp.,  J.V. through its performance of such work, a clear
moral obligation has arisen on the part of the state to  compensate  and
pay  damages  for  the  loss  sustained by A. Servidone, Inc./B. Anthony
Construction Corp., J.V. on account of the work performed and  the  work
that  it was not able to perform by virtue of the Decision and Order, in
the manner set forth in this act.  In  this  connection,  A.  Servidone,
Inc./B.  Anthony Construction Corp., J.V. submitted a verified statement
of claim in the sum $22,323,588.00.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15391-01-2

S. 7187                             2

  S 2. Notwithstanding any other provision of law,  the  comptroller  is
hereby  authorized  to  verify  the  amounts  submitted by A. Servidone,
Inc./B. Anthony Construction Corp., J.V. in its statement of  claim  and
such  other amounts that may be due or come due on account of the cessa-
tion  of  work and approve payment of the claim by A. Servidone, Inc./B.
Anthony Construction Corp., J.V. and its subcontractors,  suppliers  and
materialmen  who  performed  or  were  under a commitment to perform the
construction project known as the reconstruction and bridge  replacement
on Route 17 at Exit 122 in the Town of Wallkill, Orange County, New York
(NYSDOT Contract No. D261655).
  Payment  under  this act shall be made from funds heretofore allocated
and encumbered for such construction work  or  from  general  funds  and
shall  include such amount to pay for the damages sustained by A. Servi-
done, Inc./B. Anthony Construction Corp., J.V. and  its  subcontractors,
suppliers and materialmen, including, but not limited to, the following:
  (1)  The  costs  incurred  in performing work, including work that was
extra or additional to the scope of work, and the purchase  of  material
and  purchase and rental of equipment. This includes, but is not limited
to, work performed and requisitioned but not paid,  work  performed  but
not  paid  in  full, work completed but not on a pay requisition and the
initial office set up cost.
  (2) The costs incurred as a result of the stop work order.
  (3) The costs incurred in the premature cessation of work,  including,
but not limited to:
  a.  Professional  fees related to the premature ending of the contract
and bookkeeping expenses.
  b. Demobilization of equipment and facilities.
  c. Rental payments for field offices for the full rental period.
  d. Travel expenses of officers and employees.
  e. Insurance premiums to the date of cancellation that  is  authorized
in writing by the state and any penalty therefor.
  f.  Storage  and  yard  expenses, equipment, maintenance, warehousing,
moving and freight expenses to hold and/or ship materials  scheduled  to
be delivered to the job site.
  g.  Permanent materials (including steel H piles, drainage structures,
reinforced concrete pipe, corrugated plastic pipe, miscellaneous materi-
als for drainage structure, epoxy coated reinforcing steel  and  various
other materials).
  h.  Temporary  materials (including temporary concrete barrier and end
sections, glare screen, prefabricated silt dike, architectural  pattern-
ing  of concrete surfaces, temporary seed and mulch tackifier and tempo-
rary crane mats.
  (4)  For  work  done  directly  by  A.  Servidone,   Inc./B.   Anthony
Construction Corp., J.V.  profit and overhead, including, but not limit-
ed to, job-site overhead and actual and projected unabsorbed home office
overhead,  and anticipated profit. Included in the definition of work is
the preparation of shop drawings, data sheets, plans and design.
  (5) For work done by a subcontractor, supplier and/or materialman, the
job-site overhead and actual and projected unabsorbed home office  over-
head  of  the  subcontractor,  supplier and/or materialman, but not less
than ten percent shall be added to the  cost  of  labor,  equipment  and
materials,  and to the cost of labor, equipment and materials plus over-
head there shall be added the  profit  of  the  subcontractor,  supplier
and/or  materialman  and anticipated profit of not less than ten percent
for the subcontractor's profit. Labor and materials  shall  include  the
cost  of  shop  drawing,  data  sheets, plans and design. To this amount

S. 7187                             3

there shall be added sixteen percent for the overhead and profit  of  A.
Servidone, Inc./B. Anthony Construction Corp., J.V.
  (6)  Loss  of  pending  contract  to supply excavated materials to old
battery plant.
  S 3. This act shall take effect immediately.

Co-Sponsors

S7187A - Bill Details

See Assembly Version of this Bill:
A9944A
Law Section:
Comptroller

S7187A - Bill Texts

view summary

Confers authority on the state comptroller to verify and pay the claim of A. Servidone, Inc./B. Anthony Construction Corp., J.V. against the state of New York with respect to construction of a project known as the reconstruction and bridge replacement on Route 17 at Exit 122 in the Town of Wallkill, Orange County, New York.

view sponsor memo
BILL NUMBER:S7187A

TITLE OF BILL:
An act
authorizing payment to
A. Servidone,
Inc./B. Anthony Construction Corp., J.V.
with respect to
construction of a project known as the reconstruction and bridge
replacement on Route 17 at Exit
122 in the Town of Wallkill, Orange County, New York

PURPOSE OF BILL:
This bill would authorize the New York State Comptroller to audit and
pay the claims of a contractor who had done work for the State under
a contract with the New York State Department of Transportation and
whose contract, through no fault of the contractor, was declared
invalid in State Supreme Court.

SUMMARY OF PROVISIONS:
Section one states that the Legislature finds that A. Servidone,
Inc., J.V. was engaged and authorized by
the State, acting by and through the New York Department of
Transportation, on or about October 6, 2011, to perform a construction
project known as the reconstruction and bridge replacement on Route
17 at Exit 122 in the Town of Wallkill, Orange County, New York
(NYDOT Contract No. 0261655).
The contractor proceeded to perform the work so contracted in good
faith and without wrongful intent and due to the decision by the
State Supreme Court has been unable to collect those monies owed by
virtue to the work performed prior to the decision by the Court.
Under present law, a court decision invalidating a contract means
that the contractor has no legal standing to sue to recover any
expenses.

Section two states that upon submission of claims certified by A.
Servidone, Inc./B. Anthony Construction Corp., J.V. and approved by
the Department of Transportation, the Comptroller, after audit, is
authorized to approve payment of such claims. Section two also states
that payments of these claims shall be paid from funds already
allocated by the State for said construction project.

Section three states that this act shall take effect immediately.

JUSTIFICATION:
On or about October 6, 2011 the State of New York, through the New
York State Department of Transportation, entered into a contract with
A. Servidone, Inc./B.Anthony Construction Corp., J.V. to perform a
construction project known as the reconstruction and bridge
replacement on Route 17 at Exit 122 in the Town of Wallkill.
The contractor had completed close to 10% of the project when the
State Supreme Court ruled the contract null and void due to no fault
of the contractor. During the construction phase of the contract,
under good faith and believing it had a valid contract with the
State, the contractor purchased materials, completed various work on
the project and entered into contracts with various subcontractors.


When the Supreme Court made its ruling it left A. Servidone,
Inc./B.Anthony Construction Corp., J.V. without any means to collect
payment from the State for work performed. Under present law, a court
decision invalidating a contract means that the contractor has no
legal standing to sue to recover any expenses. This bill simply
allows a contractor to collect expenses incurred on a construction
job that they rightfully started under a contract with the State. The
money owed to the contractor would not be a new allocation and would
come from the funds that have been already allocated by the State for
the project. This bill simply allows for the fair and equitable
resolution of this issue and makes sure that a New York State
business, which relied on the State, is fairly compensated for
expenses incurred.

PRIOR LEGISLATIVE HISTORY:
Although this is a new bill, there has been legislation passed in
prior years which protected contractor's claims when the contract
that they have relied on in good faith has been invalidated by the
courts.

FISCAL IMPLICATION:
None. All money expended would come from current allocations by the
State for the Exit 22 construction project.

EFFECTIVE DATE:
This act shall take effect immediately.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 7187--A

                            I N  S E N A T E

                               May 1, 2012
                               ___________

Introduced  by  Sens. BONACIC, LARKIN -- read twice and ordered printed,
  and when printed to be  committed  to  the  Committee  on  Finance  --
  committee  discharged,  bill amended, ordered reprinted as amended and
  recommitted to said committee

AN ACT authorizing payment to A. Servidone, Inc./B. Anthony Construction
  Corp., J.V.  with respect to construction of a project  known  as  the
  reconstruction  and  bridge replacement on Route 17 at Exit 122 in the
  Town of Wallkill, Orange County, New York

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  The legislature finds that A. Servidone, Inc./B.  Anthony
Construction Corp., J.V. was engaged and authorized by the state, acting
by and through the New York State Department of  Transportation,  on  or
about  October  6,  2011, to perform a construction project known as the
reconstruction and bridge replacement on Route 17 at  Exit  122  in  the
Town of Wallkill, Orange County, New York (NYSDOT Contract No. D261655),
and  having  commenced  performance and making substantial progress, the
contractor is threatened by financial loss, by reason  of  the  Decision
and  Order  issued by the Supreme Court dated March 1, 2012 in which the
construction contract was found to be a nullity. A.  Servidone,  Inc./B.
Anthony  Construction  Corp.,  J.V.  made purchases and executed subcon-
tracts and purchase orders in furtherance of the project. It is  further
found  that  A.  Servidone,  Inc./B.  Anthony  Construction  Corp., J.V.
undertook and executed the aforesaid work  in  good  faith  and  without
wrongful intent and that by virtue of the benefits received by the state
and   the  consideration  rendered  by  A.  Servidone,  Inc./B.  Anthony
Construction Corp., J.V. through its performance of such work,  a  clear
moral  obligation  has arisen on the part of the state to compensate and
pay damages for the loss sustained  by  A.  Servidone,  Inc./B.  Anthony
Construction  Corp.,  J.V. on account of the work performed and the work
that it was not able to perform by virtue of the Decision and Order,  in
the  manner  set  forth  in  this act. In this connection, A. Servidone,
Inc./B. Anthony Construction Corp., J.V. submitted a verified  statement
of claim in the sum $22,323,588.00.
  S  2.  Notwithstanding  any other provision of law, upon submission of
claims certified by A. Servidone, Inc./B.  Anthony  Construction  Corp.,
J.V.  and approved by the Department of Transportation, the Comptroller,

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15391-02-2

S. 7187--A                          2

after  audit,  is    authorized to make payment to A. Servidone, Inc./B.
Anthony Corp., J.V. for any amounts payable under this bill with respect
to the construction project  known  as  the  reconstruction  and  bridge
replacement  on  Route  17  at  Exit 122 in the Town of Wallkill, Orange
County, New York (NYSDOT Contract No. D261655).
  Payment under this act shall be made from funds  heretofore  allocated
and  encumbered  for  such  construction  work or from general funds and
shall include such amount to pay for the damages sustained by A.  Servi-
done,  Inc./B.  Anthony Construction Corp., J.V. and its subcontractors,
suppliers and materialmen, including, but not limited to, the following:
  (1) The costs incurred in performing work,  including  work  that  was
extra  or  additional to the scope of work, and the purchase of material
and purchase and rental of equipment. This includes, but is not  limited
to,  work  performed  and requisitioned but not paid, work performed but
not paid in full, work completed but not on a pay  requisition  and  the
initial office set up cost.
  (2) The costs incurred as a result of the stop work order.
  (3)  The costs incurred in the premature cessation of work, including,
but not limited to:
  a. Professional fees related to the premature ending of  the  contract
and bookkeeping expenses.
  b. Demobilization of equipment and facilities.
  c. Rental payments for field offices for the full rental period.
  d. Travel expenses of officers and employees.
  e.  Insurance  premiums to the date of cancellation that is authorized
in writing by the state and any penalty therefor.
  f. Storage and yard  expenses,  equipment,  maintenance,  warehousing,
moving  and  freight expenses to hold and/or ship materials scheduled to
be delivered to the job site.
  g. Permanent materials (including steel H piles, drainage  structures,
reinforced concrete pipe, corrugated plastic pipe, miscellaneous materi-
als  for  drainage structure, epoxy coated reinforcing steel and various
other materials).
  h. Temporary materials (including temporary concrete barrier  and  end
sections,  glare screen, prefabricated silt dike, architectural pattern-
ing of concrete surfaces, temporary seed and mulch tackifier and  tempo-
rary crane mats.
  (4)   For   work  done  directly  by  A.  Servidone,  Inc./B.  Anthony
Construction Corp., J.V.  profit and overhead, including, but not limit-
ed to, job-site overhead and actual and projected unabsorbed home office
overhead, and anticipated profit. Included in the definition of work  is
the preparation of shop drawings, data sheets, plans and design.
  (5) For work done by a subcontractor, supplier and/or materialman, the
job-site  overhead and actual and projected unabsorbed home office over-
head of the subcontractor, supplier and/or  materialman,  but  not  less
than  ten  percent  shall  be  added to the cost of labor, equipment and
materials, and to the cost of labor, equipment and materials plus  over-
head  there  shall  be  added  the profit of the subcontractor, supplier
and/or materialman and anticipated profit of not less than  ten  percent
for  the  subcontractor's  profit. Labor and materials shall include the
cost of shop drawing, data sheets, plans  and  design.  To  this  amount
there  shall  be added sixteen percent for the overhead and profit of A.
Servidone, Inc./B. Anthony Construction Corp., J.V.
  (6) Loss of pending contract to  supply  excavated  materials  to  old
battery plant.
  S 3. This act shall take effect immediately.

Co-Sponsors

S7187B (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A9944A
Law Section:
Comptroller

S7187B (ACTIVE) - Bill Texts

view summary

Confers authority on the state comptroller to verify and pay the claim of A. Servidone, Inc./B. Anthony Construction Corp., J.V. against the state of New York with respect to construction of a project known as the reconstruction and bridge replacement on Route 17 at Exit 122 in the Town of Wallkill, Orange County, New York.

view sponsor memo
BILL NUMBER:S7187B

TITLE OF BILL:
An act
authorizing payment to
A. Servidone,
Inc./B. Anthony Construction Corp., J.V.
with respect to
construction of a project known as the reconstruction and bridge
replacement on Route 17 at Exit
122 in the Town of Wallkill, Orange County, New York

PURPOSE OF BILL:
This bill would authorize the New York State Comptroller to audit and
pay the claims of a contractor who had done work for the State under
a contract with the New York State Department of Transportation and
whose contract, through no fault of the contractor, was declared
invalid in State Supreme Court.

SUMMARY OF PROVISIONS:
Section one states that the Legislature finds that A. Servidone,
Inc./B. Anthony Construction Corp., J.V. was engaged and authorized
by the State, acting by and through the New York Department of
Transportation, on or about October 6, 2011, to perform a construction
project known as the reconstruction and bridge replacement on Route
17 at Exit 122 in the Town of Wallkill, Orange County, New York
(NYDOT Contract No. 0261655).
The contractor proceeded to perform the work so contracted in good
faith and without wrongful intent and due to the decision by the
State Supreme Court has been unable to collect those monies owed by
virtue to the work performed prior to the decision by the Court.
Under present law, a court decision invalidating a contract means
that the contractor has no legal standing to sue to recover any
expenses.

Section two states that the New York State Comptroller is authorized
to make payments in the amounts submitted by A. Servidone,
Inc. B. Anthony Construction Corp., J.V. and approved by the Department
of Transportation for any amounts payable under this bill with
respect to the construction project. Payment of these amounts shall
be made from federal and/or state capital projects funds
appropriations available to the NYS DOT and shall include such
reasonable and verifiable amounts to pay for the actual and necessary
costs in performing construction work.

Section three states that this act shall take effect immediately.

JUSTIFICATION:
On or about October 6, 2001 the State of New York, through the New York
State Department of Transportation, entered into a contract with A.
Servidone, Inc./B. Anthony Construction Corp., J.V. to perform a

construction project known as the reconstruction and bridge
replacement on Route 17 at Exit 122 in the Town of Wallkill. The
contractor had completed close to 10% of the project when the State
Supreme Court ruled the contract null and void due to no fault of the
contractor. During the construction phase of the contract, under good
faith and believing it had a valid contract with the State, the
contractor purchased materials, completed various work on the project
and entered into contracts with various subcontractors. When the
Supreme Court made its ruling it left A. Servidone, Inc./B. Anthony
Construction Corp., J.V. without any means to collect payment from
the State for work performed. Under present law. a court decision
invalidating a contract means that the contractor has no legal
standing to sue to recover any expenses. This bill simply allows a
contractor to collect expenses incurred on a construction job that
they rightfully started under a contract with the State. The money
owed to the contractor would not be a new allocation
and would, come from the funds that have been already allocated by
the State for the project. This bill simply allows for the fair and
equitable resolution of this issue and makes sure that a New York
State business, which relied on the State, is fairly compensated for
expenses incurred.

PRIOR LEGISLATIVE HISTORY:
Although this is a new bill, there has been legislation passed in
prior years which protected contractor's claims when the contract
that they have relied on in good faith has been invalidated by the
courts.

FISCAL IMPLICATION:
None. All money expended would come from current allocations by the
State for the Exit 22 construction project.

EFFECTIVE DATE:
This act shall take effect immediately.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 7187--B

                            I N  S E N A T E

                               May 1, 2012
                               ___________

Introduced  by  Sens. BONACIC, LARKIN -- read twice and ordered printed,
  and when printed to be  committed  to  the  Committee  on  Finance  --
  committee  discharged,  bill amended, ordered reprinted as amended and
  recommitted to said committee -- committee discharged,  bill  amended,
  ordered reprinted as amended and recommitted to said committee

AN ACT authorizing payment to A. Servidone, Inc./B. Anthony Construction
  Corp.,  J.V.    with respect to construction of a project known as the
  reconstruction and bridge replacement on Route 17 at Exit 122  in  the
  Town of Wallkill, Orange County, New York

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The legislature finds that A.  Servidone,  Inc./B.  Anthony
Construction Corp., J.V. was engaged and authorized by the state, acting
by  and  through  the New York State Department of Transportation, on or
about October 6, 2011, to perform a construction project  known  as  the
reconstruction  and  bridge  replacement  on Route 17 at Exit 122 in the
Town of Wallkill, Orange County, New York (NYSDOT Contract No. D261655),
and having commenced performance and making  substantial  progress,  the
contractor  is  threatened  by financial loss, by reason of the Decision
and Order issued by the Supreme Court dated March 1, 2012 in  which  the
construction  contract  was found to be a nullity. A. Servidone, Inc./B.
Anthony  Construction  Corp.,  J.V.  made  purchases  and  executed  sub
contracts  and  purchase  orders  in  furtherance  of the project. It is
further found that A. Servidone,  Inc./B.  Anthony  Construction  Corp.,
J.V. undertook and executed the aforesaid work in good faith and without
wrongful intent and that by virtue of the benefits received by the state
and   the   consideration  rendered  by  A.  Servidone  Inc./B.  Anthony
Construction Corp., J.V. through its performance of such work,  a  clear
moral  obligation  has arisen on the part of the state to compensate and
pay actual, reasonable, and verifiable costs for the loss  sustained  by
A.    Servidone,  Inc./B. Anthony Construction Corp., J.V. on account of
the work performed and the work that it  was  not  able  to  perform  by
virtue  of  the Decision and Order, in the manner set forth in this act.
In this connection, A. Servidone,  Inc./B.  Anthony  Construction  Corp,

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15391-04-2

S. 7187--B                          2

J.V.   submitted   a   verified   statement  of  claim  in  the  sum  of
$22,323,588.00.
  S  2.  Notwithstanding  any other provision of law, upon submission of
claims certified by A. Servidone, Inc./B.  Anthony  Construction  Corp.,
J.V.  and approved by the Department of Transportation, the Comptroller,
after audit, is authorized to make  payment  to  A.  Servidone,  Inc./B.
Anthony Corp., J.V. for any amounts payable under this bill with respect
to  the  construction  project  known  as  the reconstruction and bridge
replacement on Route 17 at Exit 122 in  the  Town  of  Wallkill,  Orange
County, New York (NYSDOT Contract No. D261655).
  Notwithstanding  any  other  provision  of law, payment under this act
shall be made from federal and/or state capital projects funds appropri-
ations available to the New York State Department of Transportation  and
shall  include  such  reasonable  and  verifiable amounts to pay for the
actual and necessary costs incurred by  A.  Servidone,  Inc./B.  Anthony
Construction Corp., J.V. and its subcontractors, suppliers and material-
men  in performing construction work, including, but not limited to, the
following:
  (1) The costs incurred in performing work,  including  work  that  was
extra  or  additional to the scope of work, and the purchase of material
and rental of equipment. This includes, but  is  not  limited  to,  work
performed and requisitioned but not paid, work performed but not paid in
full, work completed but not on a pay requisition and the initial office
set  up  cost,  but only to the extent not previously paid by the state.
Included in the definition of work is the preparation of shop  drawings,
data sheets, plans and design. The value of any work already paid for by
the state in a pay item but not fully performed shall be credited to the
state.
  (2) The costs incurred in the premature cessation of work as follows:
  a. Demobilization of equipment and facilities.
  b.  Rental  payments  due under any rental agreement for field offices
through the date that any such agreement may be terminated,  or,  if  it
cannot be terminated, through the expiration date of such agreement.
  c.  Insurance  premiums to the date of cancellation that is authorized
in writing by the state and any penalty therefor.
  d. Documented storage and yard expenses,  actual  warehousing,  moving
and  freight  expenses  to  hold  and/or  ship materials scheduled to be
delivered to the job site.
  e. Permanent materials (including steel H piles, drainage  structures,
reinforced concrete pipe, corrugated plastic pipe, miscellaneous materi-
als  for  drainage structure, epoxy coated reinforcing steel and various
other materials) not paid for and incorporated in the work  or  returned
and restocked.
  f.  Temporary  materials (including temporary concrete barrier and end
sections, glare screen, prefabricated silt dike, architectural  pattern-
ing of concrete surfaces, temporary seed and mulch tackifier).
  (3) Profit and overhead applicable to the costs defined in subdivision
one in the following amounts:
  a.   For   work   done  directly  by  A.  Servidone,  Inc./B.  Anthony
Construction Corp., J.V., profit and overhead in an  amount  of  sixteen
percent  shall  be  added  to the cost of labor and materials; provided,
however, that no overhead and profit will be paid on completed bid items
referenced in NYSDOT Contract No. D261655.
  b. For work done by  a  subcontractor,  supplier  and/or  materialman,
profit  and  overhead  in an amount of sixteen percent shall be added to
the cost of labor and materials and to this amount there shall be  added

S. 7187--B                          3

five percent for the overhead and profit of A. Servidone, Inc./B. Antho-
ny  Construction  Corp.,  J.V.;  provided, however, that no overhead and
profit will be paid on completed bid items referenced in NYSDOT Contract
No. D261655.
  Any  materials  paid for by the state and not incorporated in the work
shall be delivered to the Department of Transportation.
  S 3. This act shall take effect immediately.

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