Bill Summary for Bill Number SB10-116

Date: 03/10/2010

Final
BILL SUMMARY for SB10-116

HOUSE COMMITTEE ON BUSINESS AFFAIRS AND LABOR

Votes: View-->	Action Taken:
Moved to refer Senate Bill 10-116 to the Committee	PASS

03:06 PM -- Senate Bill 10-116

Representative Rice and Representative Priola, co-prime sponsors, presented Senate Bill 10-116 concerning the reimbursement of costs incurred on change orders in public works contracts. Under SB10-116, any public entity that requires additional work on a construction contract is required to reimburse the contractor's costs on a periodic basis until the change order is complete. Contractors are required to submit an estimate to the public entity before receiving payment. Representative Rice explained the bill and gave some examples of when change orders are used. Representative Priola talked about the changing nature of the construction industry and explained that many projects are done in a design and build fashion, thus more change orders are being used. Representative Soper asked whether the money has to be available prior to the change order being issued. Representative Rice responded, stating that the money does have to be available.

03:10 PM -- Bud Starker, President of Starker Construction Company, representing Building Jobs for Colorado, testified in support of the bill and provided an overview of construction change order procedures. Mr. Starker explained why projects change and what that means for contractors. He said the bill will help contractors' work flow and will provide a sense of certainty, leading to more efficient contracting.

03:12 PM -- Craig Clark, representing Building Jobs for Colorado, testified in support of the bill. He described cash flow issues faced by contractors.


BILL:	SB10-116
TIME:	03:16:55 PM
MOVED:	Rice
MOTION:	Moved to refer Senate Bill 10-116 to the Committee of the Whole. The motion passed 10-0.
SECONDED:	Priola
		VOTE
	Balmer	Excused
	Bradford	Yes
	Casso	Yes
	Kerr A.	Yes
	Liston	Yes
	Middleton	Yes
	Priola	Yes
	Soper	Yes
	Stephens	Yes
	Gagliardi	Yes
	Rice	Yes

Final YES: 10 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS