Commerce Committee advances bill allowing mutual waiver of consequential damages in public construction contracts

The Kansas Senate Commerce Committee voted to pass Senate Bill 335, which would amend the Kansas Fairness and Public Construction Contract Act to require public construction contracts to include a mutual waiver of consequential damages. Staff explained the bill supplies a substantial form for such a waiver and would allow both contractor and owner to mutually waive claims for consequential damages arising from or relating to the contract if both parties agree.

Assistant Revisor Amelia Kovar Donhue briefed members that current statute language cited in the hearing (described in the transcript as “statute 1619 o 7”) prevents waiving certain damage claims and treats some waivers as void and against public policy. The bill would permit a mutual waiver of consequential damages by providing a statutory form and making the waiver permissible when adopted into contracts.

Senator Tyson asked whether the change would have implications for large projects such as star bonds; staff said the provision would take effect upon publication in the statute book and could apply to contracts executed after that effective date. The committee then considered a motion: Senator Owens moved to pass SB 335 favorably from the committee; Senator Klimp seconded the motion. After no further discussion, the chair asked for the ayes and by voice vote the motion carried and the bill was reported favorably out of committee.

The committee did not record a roll-call tally; the chair announced the motion passed following the voice vote. Under the bill’s text as presented in committee, the change would apply after the statute’s publication in the statute book.

Next steps: SB 335 was advanced from the Commerce Committee and will proceed to the next stage of the legislative process as determined by Senate procedures.