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Senate advances bill barring contract clauses that waive delay-damage claims
Summary
Senate Bill 78, which would prohibit construction-contract provisions that waive or extinguish rights to recover damages for unreasonable delays, was advanced to third reading after sponsors described real-world examples of delayed projects and argued the measure protects subcontractors and fair recovery.
Senate Bill 78 was presented and debated on Jan. 28, 2002. Sponsor Senator Jenkins said the bill modifies the Commerce and Trade Code to prohibit provisions in construction contracts that "waive, release, limit, or extinguish the rights to recover damages or an equitable adjustment" arising from unreasonable delays in performance.
Jenkins described a multi-month delay on a Heber City project caused by a design error that forced replacement of footings and foundation work; he said clauses that waive delay remedies shift the cost to contractors and subcontractors who must work longer to finish the job. "If you sign a contract that says you waived your rights to damages, then you have no way to recover those damages except by simply working longer on the job," Jenkins said, describing the economic pressures such clauses create.
Senators debated the inclusion of legislative findings in the codified bill language; some raised procedural concerns about embedding findings in statute text rather than committee records. After discussion the Senate advanced SB78 to the third-reading calendar in a roll-call action recorded on the floor.
