General Law Committee
Labor and Public Employees Committee
Planning and Development Committee
Government Administration and Elections Committee
AN ACT CONCERNING CONSTRUCTION CHANGE ORDERS
SUMMARY: This act requires payment requests made in accordance with construction contracts among owners, contractors, subcontractors, and suppliers to state the status of all pending change orders, change directives, and approved changes to the original contract or subcontract. The statement must include (1) when they were initiated, (2) their associated costs, and (3) a description of completed work. The act applies to commercial construction contracts subject to state law applying to private sector construction contracts and public works contracts exceeding $100,000, other than those administered by or in conjunction with the Department of Transportation. It defines “pending construction change order” and “other pending change directive” as an authorized directive for extra work that has been issued to a contractor or subcontractor.
EFFECTIVE DATE: July 1, 2009
BACKGROUND
Commercial Construction Contracts
The law requires construction contracts to include a provision to ensure timely payment of contractors, subcontractors, and suppliers. By law, a commercial construction contract is a contract or subcontract for construction, renovation, or rehabilitation between an owner and contractor or a contractor and subcontractor. But it is not a contract (1) for public works entered into by the United States or this state or any of its municipalities or political subdivisions; (2) funded or insured by the United States Department of Housing and Urban Development; (3) between an owner and contractor for less than $25,000, or a subcontract made under one; or (4) for a building intended for residential occupancy with four or fewer units (CGS § 42-158i).
OLR Tracking: DD: KM: JL: TS