Louisiana House Bill HB314

Louisiana 2015 Regular Session

• Introduced: 4/1/15
• Refer: 4/1/15
• Refer: 4/13/15
• Report Pass: 5/4/15
• Engrossed: 5/12/15
• Refer: 5/13/15

Caption

Relative to the compensation of a contractor for services performed pursuant to a contractual agreement with an agency (EG SEE FISC NOTE LF EX See Note)

Impact

The implementation of HB 314 is expected to have significant implications for state laws regarding public contracting. It reinforces the need for transparent and fair compensation practices within public contracts, particularly when the scope of work changes. Additionally, by defining the conditions under which equitable adjustments can be made, the bill aims to protect both contractors and political subdivisions from potential disputes over contract performance and payments.

Summary

House Bill 314 addresses the compensation structures for contractors engaged in public contracts with political subdivisions in Louisiana. The bill mandates that all contracts include a clause that allows for adjustments in the contracted price if there is a variation in project size of up to 15% from what was originally estimated. This ensures that contractors are fairly compensated for the actual work required, even when it deviates from initial expectations due to unforeseen circumstances.

Sentiment

The overall sentiment surrounding HB 314 is largely positive among legislators, as it is seen as a necessary measure to support fairness in public contract awards and executions. The bill received unanimous support during the voting process, indicating a strong bipartisan agreement on the need for better regulatory frameworks in public contracting. Stakeholders in the construction and service industries also view the legislation as beneficial, as it clarifies their rights and obligations under state law.

Contention

While there appears to be broad consensus on the merits of HB 314, some concerns were raised about the potential administrative burden it could place on political subdivisions that must now navigate these new requirements. Questions about how the adjustments are to be calculated and monitored could lead to complexities in contract administration and compliance. However, supporters argue that the benefits of equitable compensation far outweigh these challenges, providing necessary protections for contractors engaged with public entities.