S T A T E   O F   N E W   Y O R K
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                                  6582

                            I N  S E N A T E

                            January 28, 2016
                               ___________

Introduced  by  Sen.  HANNON -- read twice and ordered printed, and when
  printed to be committed to the Committee on Judiciary

AN ACT to amend the general obligations law, in relation to  damages  to
  contracts occasioned by delay

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Article 5 of the general  obligations  law  is  amended  by
adding a new title 18 to read as follows:
                                TITLE 18
                       DAMAGES OCCASIONED BY DELAY
SECTION 5-1801. DEFINITIONS.
        5-1802. DAMAGES FOR DELAY IN CONTRACTS.
        5-1803. NOTICE OF CLAIM.
        5-1804. FAILURE TO PROGRESS.
        5-1805. CONTENT OF CLAIM.
        5-1806. CERTIFICATION OF CLAIM.
  S  5-1801. DEFINITIONS. FOR PURPOSES OF THIS TITLE THE FOLLOWING TERMS
SHALL HAVE THE FOLLOWING MEANINGS:
  1. "CONTRACT" SHALL MEAN ANY CONTRACT AWARDED BY THE STATE, ANY  STATE
AGENCY, DEPARTMENT, BOARD, BUREAU, MUNICIPAL CORPORATION, PUBLIC BENEFIT
CORPORATION,  PUBLIC  AUTHORITY  OR  ANY  OTHER STATE ENTITY, ANY SCHOOL
DISTRICT OR ANY OTHER SPECIAL DISTRICT, OR ANY  INSTRUMENTALITY  OF  THE
STATE  OR  A  POLITICAL  SUBDIVISION  OF THE STATE, OR ANY OTHER PERSON,
PARTNERSHIP, CORPORATION OR ENTITY WHICH ENTERS INTO A PUBLIC OR PRIVATE
CONTRACT FOR DESIGN, CONSTRUCTION,  RECONSTRUCTION,  DEMOLITION,  ALTER-
ATION, REPAIR OR IMPROVEMENT TO THE PROPERTY OF ANOTHER.
  2. "DELAY" SHALL MEAN ANY DELAY, DISRUPTION, INTERFERENCE, INEFFICIEN-
CIES,  IMPEDANCE,  HINDRANCE  AND ACCELERATION IN THE PERFORMANCE OF THE
CONTRACT WHICH CAUSES DAMAGES TO BE INCURRED BY  A  CONTRACTOR,  SUBCON-
TRACTOR OR MATERIALMAN TO A CONTRACT AND WHICH IS A DIRECT RESULT OF THE
NEGLIGENCE,  MALFEASANCE,  MISFEASANCE  OF THE PERSON OR ENTITY FOR WHOM
THE CONTRACTOR, SUBCONTRACTOR OR MATERIALMAN IS  PROVIDING  SERVICES  AS
PROVIDED  FOR  IN THE CONTRACT, OR ANY DISRUPTION, INTERFERENCE, INEFFI-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07155-05-5
              

S. 6582                             2

CIENCIES, IMPEDANCE, HINDRANCE AND ACCELERATION CAUSING  DAMAGES  TO  BE
SIMILARLY INCURRED BY SUCH PERSON OR ENTITY.
  3.  "CLAIM" SHALL MEAN A REQUEST FOR ADDITIONAL COSTS FROM THE FOLLOW-
ING CAUSES LISTED IN THIS  SUBDIVISION  ATTRIBUTABLE  TO  DELAY  IN  THE
PERFORMANCE  OF  A CONTRACT, OCCASIONED BY ANY ACT OR OMISSION TO ACT BY
THE PUBLIC OR PRIVATE PERSON OR ENTITY WITH WHOM A  CONTRACTOR,  SUBCON-
TRACTOR  OF MATERIALMAN HAS CONTRACTED WITH, BUT SHALL NOT INCLUDE DELAY
FROM ANY OTHER CAUSE, WHICH DELAY SHALL BE COMPENSATED FOR SOLELY BY  AN
EXTENSION OF TIME TO COMPLETE THE PERFORMANCE OF THE WORK:
  (A)  THE  FAILURE  OF  THE  PUBLIC OR PRIVATE PERSON OR ENTITY TO TAKE
REASONABLE MEASURES TO COORDINATE AND PROGRESS THE WORK;
  (B) EXTENDED DELAYS ATTRIBUTABLE TO THE PUBLIC OR  PRIVATE  PERSON  OR
ENTITY  IN THE REVIEW OR ISSUANCE OF ORDERS-ON-CONTRACT OR FIELD ORDERS,
IN SHOP DRAWING REVIEWS AND APPROVALS OR AS A RESULT OF  THE  CUMULATIVE
IMPACT  OF  MULTIPLE  ORDERS ON CONTRACT, WHICH CONSTITUTE A QUALITATIVE
CHANGE TO THE PROJECT WORK AND WHICH HAVE A VERIFIABLE IMPACT ON PROJECT
COSTS;
  (C) THE UNAVAILABILITY OF THE SITE FOR SUCH AN EXTENDED PERIOD OF TIME
WHICH SIGNIFICANTLY AFFECT THE SCHEDULED COMPLETION OF THE CONTRACT; OR
  (D) THE ISSUANCE OF A  STOP  WORK  ORDER  RELATIVE  TO  A  SUBSTANTIAL
PORTION OF WORK FOR A PERIOD EXCEEDING THIRTY DAYS.
  S  5-1802.  DAMAGES  FOR  DELAY  IN  CONTRACTS. ALL CONTRACTS MADE AND
AWARDED SHALL CONTAIN, OR BE PRESUMED TO CONTAIN, A CLAUSE WHICH  ALLOWS
A  CONTRACTOR,  SUBCONTRACTOR  OR  MATERIALMAN TO MAKE A CLAIM FOR ADDI-
TIONAL COSTS ARISING FROM DELAY IF SUCH DELAY IN THE PERFORMANCE OF  THE
CONTRACT IS CAUSED BY OR OCCASIONED BY ANY ACT OR OMISSION OF THE ENTITY
OR PERSON WITH WHOM THEY HAVE CONTRACTED IN THE CONTRACT, OR ANY OF SUCH
ENTITY'S OR PERSON'S REPRESENTATIVES OR AGENTS.
  S  5-1803. NOTICE OF CLAIM. THE CONTRACTOR, SUBCONTRACTOR OR MATERIAL-
MAN SHALL PROVIDE A NOTICE OF CLAIM OF AN ANTICIPATED CLAIM FOR DELAY TO
A PUBLIC OR PRIVATE PERSON OR ENTITY BY PERSONAL  SERVICE  OR  CERTIFIED
MAIL  NO  MORE  THAN FIFTEEN DAYS AFTER SUCH CONTRACTOR KNEW OR OUGHT TO
HAVE KNOWN OF THE FACTS WHICH FORM THE BASIS OF THE CLAIM. THE PUBLIC OR
PRIVATE PERSON OR ENTITY SHALL ACKNOWLEDGE RECEIPT  OF  THE  NOTICE,  IN
WRITING,  WITHIN  FIVE DAYS. NO PUBLIC OR PRIVATE PERSON OR ENTITY SHALL
INCUR ANY LIABILITY FOR ANY DAMAGES WHICH ACCRUE MORE THAN FIFTEEN  DAYS
PRIOR  TO  THE  DELIVERY  OR MAILING OF THE REQUIRED NOTICE. SUCH NOTICE
SHALL AT A MINIMUM PROVIDE A DESCRIPTION OF ANY  OPERATIONS  THAT  WERE,
ARE  BEING OR WILL BE DELAYED, AND THE DATE OR DATES AND REASONS FOR THE
DELAY. IN NO CASE SHALL ORAL NOTICE CONSTITUTE NOTICE PURSUANT  TO  THIS
SECTION  OR  BE  DEEMED  TO  CONSTITUTE  A  WAIVER OF THE WRITTEN NOTICE
REQUIREMENT.  FOR THE PURPOSES OF THIS TITLE, FAILURE  TO  PROVIDE  SUCH
NOTICE  SHALL  BE  CONSIDERED  TO  HAVE PREJUDICED THE PUBLIC OR PRIVATE
ENTITY.
  S 5-1804. FAILURE TO PROGRESS. FAILURE BY A CONTRACTOR  TO  ADEQUATELY
PROGRESS  THE  COMPLETION OF WORK SHALL BE CONSIDERED IN DETERMINING THE
CAUSES OF DELAY. FOR ANY CLAIM ASSERTED  PURSUANT  TO  THIS  TITLE,  THE
CONTRACTOR,  SUBCONTRACTOR  OR  MATERIALMAN  SHALL KEEP DETAILED WRITTEN
RECORDS OF THE COSTS AND SHALL MAKE THEM AVAILABLE FOR THE  PURPOSES  OF
AUDIT  AND  REVIEW. FAILURE TO PROVIDE THE REQUIRED WRITTEN NOTICE OR TO
MAINTAIN AND FURNISH RECORDS OF THE COSTS OF SUCH CLAIMS  SHALL  CONSTI-
TUTE A WAIVER OF THE CLAIM.
  S  5-1805.  CONTENT  OF  CLAIM.  THE  FOLLOWING  INFORMATION  SHALL BE
PROVIDED BY THE CONTRACTOR UPON REQUEST OF A PUBLIC OR PRIVATE PERSON OR
ENTITY IF NOT PREVIOUSLY SUPPLIED:

S. 6582                             3

  (A) A DESCRIPTION OF THE OPERATIONS THAT WERE DELAYED, THE REASONS FOR
THE DELAY AND AN EXPLANATION OF HOW THEY WERE DELAYED;
  (B)  A DETAILED FACTUAL STATEMENT OF THE CLAIM PROVIDING ALL NECESSARY
DATES, LOCATIONS AND ITEMS OF WORK AFFECTED BY THE CLAIM;
  (C) THE DATE ON WHICH ACTIONS  RESULTING  IN  THE  CLAIM  OCCURRED  OR
CONDITIONS RESULTING IN THE CLAIM BECAME EVIDENT;
  (D)  THE  NAMES,  FUNCTIONS AND ACTIVITIES OF EACH CONTRACTOR, SUBCON-
TRACTOR AND MATERIALMAN INVOLVED IN, OR KNOWLEDGEABLE ABOUT  FACTS  THAT
GAVE RISE TO SUCH CLAIM;
  (E)  THE  IDENTIFICATION OF ANY PERTINENT DOCUMENTS, AND THE SUBSTANCE
OF ANY MATERIAL ORAL COMMUNICATION RELATING TO SUCH CLAIM;
  (F) THE AMOUNT OF ADDITIONAL COMPENSATION SOUGHT; AND
  (G) IF AN EXTENSION OF TIME IS ALSO REQUESTED, THE SPECIFIC NUMBER  OF
DAYS FOR WHICH IT IS SOUGHT AND THE BASIS FOR SUCH REQUEST AS DETERMINED
BY AN ANALYSIS OF THE CONSTRUCTION PROGRESS SCHEDULE.
  S  5-1806.  CERTIFICATION  OF  CLAIM.  WHEN  SUBMITTING ANY CLAIM, THE
CONTRACTOR, SUBCONTRACTOR OR MATERIALMAN SHALL CERTIFY  IN  WRITING  AND
UNDER  OATH  THAT THE SUPPORTING DATA IS ACCURATE AND COMPLETE TO HIS OR
HER BEST KNOWLEDGE OR BELIEF, AND THAT ANY AMOUNT DEMANDED REFLECTS,  IN
GOOD FAITH, WHAT HE OR SHE BELIEVES TO BE THE PUBLIC OR PRIVATE PERSON'S
OR ENTITY'S LIABILITY.
  S 2. This act shall take effect on the one hundred eightieth day after
it shall have become a law and shall apply to all contracts entered into
on and after such date.