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Bill would ban contract clauses making contractors pay for owner-caused delays; contractors and water authorities split on impact
Summary
Senate Bill 776 would prohibit government contract clauses that require contractors to bear costs when delays are caused solely by the government entity. Contractor groups and trade associations testified in favor; several public authorities urged exemptions for critical infrastructure.
Senate Bill 776, authored by Senator Hughes, would bar governmental entities from including contractual terms that shift the cost of owner-caused construction delays onto contractors.
Senator Hughes told the committee that the bill addresses “one-sided” contract clauses that require contractors to pay liquidated damages even when the governmental owner caused the delay. Proponents argue those clauses force bidders to pad prices, decrease competition and raise costs for taxpayers. Jason Martin with the…
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