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Kansas committee hears debate over mutual waivers of consequential damages in public construction contracts
Summary
Senate Bill 335 would require public construction contracts to include a standard mutual waiver of consequential damages; contractors and industry groups urged passage to reduce bid risk, while municipal attorneys warned the measure would limit local negotiation on project-specific risks.
Committee staff told the Senate Commerce Committee that Senate Bill 335 would amend the Kansas Fairness and Public Construction Contract Act to require public construction contracts to include a mutual waiver of consequential damages "substantially in the form" provided in the bill, and staff noted the language is in the bill text and bill brief.
Senator Tim Schallenberger, who introduced the bill, and several industry witnesses said the change would standardize risk allocation and protect competition for public projects. "These clauses were starting to appear in these public contracts that were not in the best interest of, in my opinion, the state or the contractors," Schallenberger said, describing constituent concerns that led to the bill.
Gina Atterberry, general…
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