Pennsylvania 2023-2024 Regular Session

Pennsylvania House Bill HB1514

Introduced
6/26/23  

Caption

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.

Impact

The enactment of HB 1514 is expected to stabilize the procurement process for construction services within Pennsylvania. By allowing for contract adjustments due to rising material costs, the bill aims to support contractors and subcontractors facing challenges in meeting agreed-upon contract prices. This adjustment process could lead to more equitable contract terms and ensure that contractors are not unduly burdened by unforeseen cost increases, which might otherwise lead to financial instability or contract defaults.

Summary

House Bill 1514 proposes amendments to Title 62 of the Pennsylvania Consolidated Statutes regarding procurement organization. The bill specifically empowers the Department of General Services to adjust contracts related to construction materials in cases where there has been a significant increase in material costs. The objective is to provide a mechanism for contractors to receive adjustments on their contracts to account for price increases exceeding five percent from the time of contract award. This is particularly relevant given the inflationary pressures on construction materials that have been witnessed since 2020.

Sentiment

The overall sentiment surrounding HB 1514 appears to be supportive among stakeholders in the construction industry, including contractors and suppliers who stand to benefit from the price adjustment provisions. However, concerns may arise regarding the implementation process and potential challenges that the department might face in assessing and approving adjustment requests. Additionally, some skeptics may question whether the measures sufficiently address all possible scenarios related to price increases, or if there could be unintended consequences.

Contention

Though no significant contention was noted in the discussions surrounding HB 1514, it is possible that debates could arise over the criteria used for determining eligibility for contract price adjustments. For example, the five percent threshold may be viewed as either too lenient or too strict by different stakeholders. As the bill progresses through the legislative process, additional discussions may focus on safeguarding mechanisms to prevent abuse of the adjustment criteria and ensuring transparency in the decision-making process.

Companion Bills

No companion bills found.

Previously Filed As

PA SB359

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.

PA SB957

In general provisions, further providing for definitions; in procurement organization, further providing for specific construction powers, duties and procedures; in procurement of construction and design professional services, further providing for procurement of design professional services; providing for project delivery methods; and making a repeal.

PA SB687

In general provisions, further providing for definitions; in procurement organization, further providing for specific construction powers, duties and procedures; in procurement of construction and design professional services, further providing for procurement of design professional services; providing for project delivery methods; and making a repeal.

PA HB798

In powers and duties in general, further providing for departmental reports.

PA HB2637

In veteran-owned small businesses, further providing for definitions, for regulations, for participation goal, for duties of Department of General Services and for bonding and progress payments, providing for request for full or partial waiver of contract-specific goal, further providing for reports and providing for disparity study; in small and disadvantaged businesses, further providing for policy and for definitions, providing for Small Diverse Business Program and for nonapplicability, further providing for regulations and for duties of department, providing for request for full or partial waiver of contract-specific goal, further providing for bonding and progress payments and for report to General Assembly and providing for aspirational target, for disparity study and for program expiration; providing for Participation Program for Construction and Design Professional Services; and making editorial changes.

PA HB546

Further providing for powers and duties of department.

PA A4718

Provides equitable relief to State contractors who sustained unanticipated expenses due to price escalation for construction materials.

PA A2876

Provides equitable relief to State contractors who sustained unanticipated expenses due to price escalation for construction materials.

PA HB708

Further providing for powers and duties of department.

PA HB2256

In veteran-owned small businesses, further providing for definitions, for regulations, for participation goal, for duties of Department of General Services and for bonding and progress payments, providing for request for full or partial waiver and good faith efforts, further providing for reports and providing for disparity study; in small and disadvantaged businesses, further providing for policy and for definitions, providing for Small and Midsize Diverse Business Program and for nonapplicability, further providing for regulations and for duties of department, providing for request for full or partial waiver and good faith efforts, further providing for bonding and progress payments and for report to General Assembly and providing for aspirational target, for disparity study and for program review and expiration; providing for Program for Construction and Design Professional Services; and making editorial changes.

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