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2016 Regular Session
SENATE BILL NO. 354
BY SENATOR CORTEZ
PUBLIC CONTRACTS. Provides relative to contracts of the DOTD. (gov sig)
1 AN ACT
2 To amend and reenact R.S. 48:252(B)(7)(b) and 256.4, and to repeal R.S. 48:251.5(B)(3),
3 relative to contracts of the Department of Transportation and Development; to
4 provide relative to plan changes, partial acceptance, and attorney fees; and to provide
5 for related matters.
6 Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 48:252(B)(7)(b) and 256.4 are hereby amended and reenacted to read
8 as follows:
9 §252. Advertisement for bids; public presentment and reading of bids; fee for bid
10 proposals
11 * * *
12 B. Contracts for projects with an aggregate estimated cost equal to or greater
13 than the contract limit shall be let in accordance with the following provisions:
14 * * *
15 (7)(a) * * *
(b) Plan changes pertaining to contracts not required by this Part to be put out
16
17 for public bid shall be negotiated in the best interest of the department or let out for
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 354
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1 public bid as provided by this Part. Negotiated plan changes shall be fully
2 documented and itemized as to costs, including material quantities, material costs,
3 labor costs, taxes, insurance, employee benefits, other related costs, profit, and
4 overhead. Where certain unit prices are contained in the initial contract, no
5 deviations shall be allowed in computing negotiated plan change costs for work
6 under those work items unless the actual quantities worked vary more than
7 twenty-five percent from the estimated quantities in the contract as advertised. Plan
8 changes within the scope of the contract shall not be recorded in the office of the
9 recorder of mortgages in the parish where the work is performed.
10 * * *
11 §256.4. Acceptance by the department
12 A. Whenever the department enters into a contract for the construction,
13 maintenance, alteration, or repair of any public works, in accordance with the
14 provisions of this Subpart, the undersecretary or his duly appointed designee of the
15 department shall have recorded in the office of the recorder of mortgages, in the
16 parish where the work has been done, a final acceptance of said work or a partial
17 acceptance of any specified area thereof upon completion of all of the work. The
18 final acceptance shall be executed by the secretary or his duly appointed designee
19 within thirty days of completion of all of the work on the project. The recordation of
20 a final acceptance in accordance with the provisions of this Section shall be effective
21 for all purposes under this Chapter.
22 B. "Partial acceptance" as used in this Section means the determination
23 by the department made after final inspection of a portion of the project that
24 the contractor has satisfactorily completed that portion of the project and that
25 such portion may be used advantageously by traffic or for other use.
26 Section 2. R.S. 48:251.5(B)(3) is hereby repealed.
27 Section 3. This Act shall become effective upon signature by the governor or, if not
28 signed by the governor, upon expiration of the time for bills to become law without signature
29 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
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1 vetoed by the governor and subsequently approved by the legislature, this Act shall become
2 effective on the day following such approval.
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Sharon Lyles.
DIGEST
SB 354 Engrossed 2016 Regular Session Cortez
Present law, relative to contracts of the DOTD, provides for plan changes that may be
negotiated.
Proposed law adds that plan changes within the scope of the contract are not required to be
recorded in the office of the recorder of mortgages in the parish where the work is
performed.
Present law provides for final acceptance or partial acceptance of work performed under
contract and for recordation of a final acceptance or partial acceptance of any specified area
of the work upon completion.
Proposed law defines "partial acceptance" to mean the determination by DOTD made after
final inspection of a portion of the project that the contractor has satisfactorily completed a
portion of the project and that such portion may be used advantageously by traffic or for
other use.
Present law provides for payment of attorney fees by DOTD to the contractor if the DOTD
fails to make final payment or neglects to promptly ascertain final quantities under the
contract in bad faith and a mandamus to perform such acts is required for the contractor to
receive all monies due and owed the contractor under the contract.
Proposed law repeals present law.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 48:252(B)(7)(b) and 256.4; repeals R.S. 48:251.5(B)(3))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Transportation,
Highways, and Public Works to the original bill
1. Removes provisions that proposed to add that any provision that waives,
releases, or extinguishes the rights to recover the cost of damages or to obtain
equitable adjustment for delays in performing a contract, if delay is caused
in whole or in part, by acts or omissions in control of the DOTD are not
applicable to negotiated plan changes that settle, resolve, or conclude a
dispute, or release or extinguish a claim to recover the cost of damages or an
equitable adjustment for such delays.
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.