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SD 142

An Act relative to timely public payments for work not included in original construction contracts

194th Legislature (2025-2026) Introduced by Mike Moore

The bill requires timely decision on price-increase change orders in public construction, with a 30-day window, possible 7-day extensions, and deemed approval if no decision is mad

House concurred
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Bill Summary · SD 142

Summary: An Act relative to timely public payments for work not included in original construction contracts (Senate Docket No. 142)

Status: House concurred
Introduced: February 27, 2025
Committee action: Referred to State Administration and Regulatory Oversight (2025-02-27); House concurred (same date)

Purpose and overall intent

This proposed act seeks to ensure timely consideration and payment for requests to increase contract price for work not included in original public construction contracts. It adds a formal, time-bound process for approving or rejecting such change-order requests across public construction contracts, with incentives to avoid undue delays in payment.

Key provisions

  • Scope: Applies to every contract subject to:

    • section 44A of chapter 149, or
    • section 39M of chapter 30, or
    • chapter 149A, and to every subcontract or trade contract as applicable. This targets public construction projects in the Commonwealth.

  • Timeframe for decision: Each contract must provide a reasonable time period for approving or rejecting a written request to increase the contract price. The maximum allowed period is:

    • 30 days after the later of:
    • the start of the performance of the work the request covers, or
    • the submission of the written request.

  • Extensions by tier: The time period can be extended by up to an additional 7 days for each contract tier below the owner (i.e., through the contract chain to subcontractors).

  • Deemed approval: If no decision is made within the applicable period, the request is deemed approved and may be submitted for payment in the next periodic progress payment, unless it is rejected before the payment due date.

  • Written rejection requirements: If rejected, the decision must be in writing and include:

    • the factual and contractual basis for the rejection,
    • a certification that the rejection was made in good faith. The rejection is subject to the applicable dispute resolution procedure.

  • Delay prohibitions after rejection: A contract provision delaying commencement of the required process beyond 60 days after rejection is void and unenforceable.

Who is affected

  • Public contracting authorities (owners) and their contractors and subcontractors engaged in public construction projects.
  • Contracting entities at all tiers in the project delivery chain (prime contractors, subcontractors, and trade contractors) affected by change-order requests.

Procedural and timing considerations

  • The bill codifies a clear 30-day decision window, with flexibility for multi-tier projects.
  • It creates a presumption of approval if agencies fail to respond within the window, expediting payments.
  • It imposes formal written rejection standards to improve accountability and provide a clear dispute-resolution path.
  • It prohibits procedural stalling beyond 60 days after a rejection, preventing prolonged delays.

Potential impact

  • Improves predictability and cash flow for contractors and suppliers working on public projects.
  • Reduces financial ambiguity associated with changes not included in the original contract scope.
  • Encourages timely project administration and adjudication of change-order requests.
  • Introduces standardized dispute-resolution handling for contested price increases.

Notes

  • The bill is an amendment to Section 39G of Chapter 30 (as appearing in the 2022 Official Edition), inserting a new paragraph addressing timely consideration of price-increase requests.
  • Current status indicates House concurrence, signaling potential movement toward enacted law if differences with the Senate version (if any) are resolved.

Compiled from official sources — confirm details with the bill’s official record.

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