S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6943
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 24, 2017
                                ___________
 
 Introduced by M. of A. KIM -- read once and referred 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.
   § 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD05257-01-7

 A. 6943                             2
 
 THE  CONTRACTOR,  SUBCONTRACTOR  OR MATERIALMAN IS PROVIDING SERVICES AS
 PROVIDED FOR IN THE CONTRACT, OR ANY DISRUPTION,  INTERFERENCE,  INEFFI-
 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.
   §  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.
   §  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.
   § 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.

 A. 6943                             3
 
   §  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:
   (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.
   §  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.
   § 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.