An Act state funded contruction work

194th Legislature (2025-2026) Introduced by Kelly Pease

Mandates a two-year completion schedule for all state construction, with a monthly 10% of contract value penalty for delays until finish, plus up to six months extension via DCAMM.

Hearing rescheduled to 10/08/2025 from 01:00 PM-01:55 PM in 222 and Virtual Hearing updated to New End Time

Overview

H.3401, introduced February 27, 2025 by Rep. Kelly W. Pease, proposes that all Commonwealth construction contracts specify a two-year schedule for completion and imposes a monthly financial penalty if projects exceed that timeline. The bill would supersede existing general or special laws, including Chapter 149 of the General Laws, to implement these requirements. It becomes effective upon passage.

What the bill would do

Require every Commonwealth agency awarding construction contracts to include a two-year completion schedule.

Impose a financial penalty if a project is not completed within the two-year schedule: a penalty equal to 10% of the contract value, assessed each month until the project is concluded.

Create an extension mechanism for unforeseen issues:

Contractors may submit a written explanation to the Commissioner of the Division of Capital Asset Management and Maintenance (DCAMM) and appeal for an extension.
Extensions may be granted for up to six months, with the Commissioner promulgating rules and regulations governing the appeal process.

Section 2 states that the act takes effect upon passage.

Key provisions and implications

Hard two-year deadline for state construction projects, with a punitive monthly penalty structure.

Monthly penalties could escalate quickly (10% of contract value per month) if a project overruns, until completion.

An extension process exists to address legitimate delays, but requires formal approval and regulatory rules from DCAMM.

DCAMM would play a central role in administering extensions and appeals, under promulgated rules.

Who is affected

Commonwealth agencies and their construction programs.

Contractors and bidders on state-funded construction projects.

The Commissioner of DCAMM and the Division of Capital Asset Management and Maintenance (DCAMM) as the administering authority.

Taxpayers and state budget/finances, given the penalties and potential impact on project costs and timelines.

Procedural timeline and status

Introduced: February 27, 2025.

Referred to: State Administration and Regulatory Oversight.

Legislative actions indicate Senate concurrence was achieved.

Hearings:

Several reschedulings in 2025: most recently rescheduled to October 8, 2025, with changes to location (Room 222 and virtual components) and end times.
Prior reschedules included shifts to different dates/times in September and October 2025.

Related bill: HD 4143 (replaces).

Potential impact and considerations

The bill introduces a rigorous timetable and significant penalties that could affect project risk management, contractor selection, and budgeting.

While extensions are available for unforeseen issues, the onus is on timeliness and compliance with a strict two-year target.

Administrative implementation would require a clear regulatory framework from DCAMM to manage extensions and appeals effectively.

Note: The bill’s text specifies a 10% monthly penalty "until the project is concluded," which represents a substantial enforcement mechanism beyond standard liquidated damages.

Bill