Efforts to Address Material Cost Escalation Costs Continue with Legislature.
A bill to allow contractors equitable relief for unanticipated expenses caused by construction materials price escalation is moving forward in the last days of the NYS Legislative session. Under the leadership of the National Electrical Contractors, New York City Chapter, the bill would allow whenever terms and conditions of a construction contract awarded by New York State or a public benefit corporation based on bids submitted prior to April 1, 2020, but for materials purchased or invoiced after March 1, 2020, to be adjusted based on the cost increase acquired by the contractor, subcontractor or supplier of the materials.
This legislation does not cover city projects and was based on a similar bill from the 1974 fuel crisis. The NYC School Construction Authority would be included in these provisions since legally it was created as a State entity.