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What's New: Government Affairs

Updates on SFAA Priority Issues

Thursday, April 24, 2014  
--Bond Thresholds; A late session introduction in Colorado would increase the state bond threshold from $100,000 to $150,000. SFAA and AIA are working to defeat this bill. HB 1387 has been given “late bill” status so that it can be considered and enacted even though the legislature is close to adjournment. The bill was introduced at the request of Colorado University and Colorado State University, and the local contractors associations apparently are supporting the increase. With the additional support of the legislative leadership, we have an uphill fight. The local surety association has engaged on this and we have contacted AGC and ASA.

--New P3 Legislation; SFAA and AIA will meet with the bill sponsor of recently introduced legislation to authorize a P3 for the renovation of an historic building. Under the bill, the private owner is required to obtain a bond for an amount sufficient to guaranty the completion of the project, thus ensuring that all the economic and employment benefits to the State are realized in the event that the owner is financially unable to complete the project or the project should remain idle. This is called a completion and economic benefits bond in the bill. From the bill, it is clear that the State expects economic growth and an increase in jobs in downtown Providence as the benefits of this renovation.

--Statutes of Limitation; In Connecticut, SFAA, AIA and the Insurance Association of Connecticut continue to work with the contractors to enact a ten year statute of limitations for the State to bring claims against stakeholders in the public construction process in order to overrule the state supreme court’s decision in the Lombardo case. In Lombardo, the court applied the doctrine of nullum tempus and permitted the State to sue for alleged design and construction defects 12 years after the construction project had been completed, by which time the statute of limitations and repose had expired. The industry had its bill introduced and heard in committee in the House. The bill has been amended twice and each time the result did not include contractors and their sureties. The industry locally now is trying to amend the bill so that the industry legislative draft with a ten-year statute of limitation would be restored. Another concept that is being considered is delaying the effective date of the new ten year statute of limitations for an extra year. This would keep the current law in effect for 18 months for public owners to file any claims they have.

View PDF version | navigate to Government Relations / General Information - Public


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