Provides equitable relief to State contractors who sustained unanticipated expenses due to price escalation for construction materials.
Impact
If enacted, A4718 allows for contract amendments based on verified claims of material cost escalations that exceed five percent. The adjustments are contingent upon the approval of the Director of the relevant division in the Department of the Treasury. Contracts affected need to be those for materials purchased or invoiced after March 1, 2020. This proactive measure aims to ensure continued public works projects can be fulfilled without financial strain leading to project abandonment.
Summary
Assembly Bill A4718 aims to provide equitable relief to state contractors who have faced unexpected increases in the costs of construction materials. It addresses significant disparities faced by contractors awarded contracts during a period when the prices of essential materials surged due to unforeseen circumstances. By permitting adjustments to the contract terms based on verified increases in material costs, the bill seeks to protect the interests of both the contractors who have been affected and the public that relies on efficient public works execution.
Contention
The bill specifically contains stipulations that no adjustments shall exceed total project appropriations, which is designed to prevent any excess financial burden on state resources. However, there may be concerns regarding the state's ability to sustain these adjustments without jeopardizing budgetary constraints in other areas. Critics may argue that while the bill proposes necessary relief, its implementation could create challenges ensuring consistent oversight and equitable treatment across various contracts.
Provides equitable relief to government contractors who have sustained unanticipated expenses due to increases for construction materials; appropriates $25 million.
Provides equitable relief to government contractors who have sustained unanticipated expenses due to increases for construction materials; appropriates $25 million.
Provides equitable relief to government contractors who have sustained unanticipated expenses due to increases for construction materials; appropriates $25 million.
Relates to amending state construction and commodity contracts to provide equitable relief to contractors who have sustained unanticipated expenses by reason of construction materials price escalations.
Relates to amending state construction and commodity contracts to provide equitable relief to contractors who have sustained unanticipated expenses by reason of construction materials price escalations.
In procurement organization, further providing for powers and duties of Department of General Services and providing for limited contract adjustment due to construction material price escalation.
In procurement organization, further providing for powers and duties of Department of General Services and providing for limited contract adjustment due to construction material price escalation.
Provides equitable relief to government contractors who have sustained unanticipated expenses due to increases for construction materials; appropriates $25 million.
Provides equitable relief to government contractors who have sustained unanticipated expenses due to increases for construction materials; appropriates $25 million.
Provides equitable relief to government contractors who have sustained unanticipated expenses due to increases for construction materials; appropriates $25 million.
State management: purchasing; procedures to limit foreign influence in state contracting; establish. Amends secs. 113, 114, 241, 241c & 261 of 1984 PA 431 (MCL 18.1113 et seq.) & adds sec. 272.
State management: purchasing; procedures to limit foreign influence in state contracting; establish. Amends secs. 113, 114, 241, 241c & 261 of 1984 PA 431 (MCL 18.1113 et seq.) & adds sec. 272.