Public works contracting reform advances in New York State

Public works contracting reform in New York State got a push forward recently when Gov. Kathy Hochul signed into law a bill that creates a temporary advisory council to study the issue and recommend improvements to how the state engages with contractors.

The Construction Industry Public Contracting Advisory Council bill creates the 23-member temporary Construction Industry Advisory Council on Public Contracting Reform. Members of this board will include state legislators, regulators, construction contractors and subcontractors, labor, and other stakeholders.

The council will “analyze the many vexing contractual issues that negatively impact contractors and subcontractors working on public works projects,” according to a news release. It will then “identify solutions needed to reform New York State’s public contracting process, making it more equitable for the contractors and subcontractors working on public works projects.”

The council will study several issues including damages incurred by contractors, subcontractors, and other parties from delay in payments by project owners due to “no delay damages” clauses and unfair contractual notice provisions; substantial completion as defined in amended state finance law; retainage in public works contracts; and public works contracting issues affecting minority- and women-owned contractors and subcontractors.