The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Sharon Lyles.
DIGEST
SB 354 Original 2016 Regular Session Cortez
Present law provides that any provision in a DOTD contract that requires a suit or arbitration
proceeding to be brought in a forum or jurisdiction outside of Louisiana or that the agreement must
be interpreted according to the laws of another jurisdiction is null and void and unenforceable as
against public policy.
Proposed law adds 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 such contract, if such
delay is caused in whole, or in part, by acts or omissions in the control of the department. Provides
that this provision is not applicable to negotiated plan changes between the department and the
contractor 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.
Present law 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. 48:251.8(intro para), 252(B)(7)(b) and 256.4; adds R.S. 48:251.8(3); repeals R.S.
48:251.5(B)(3) )