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SB 335

Requiring public construction contracts to include a mutual waiver of consequential damages.

2025-2026 Regular Session Introduced by Tim Shallenburger

Kansas bill mandates mutual waivers of consequential damages in all public construction contracts to reduce litigation costs and lower bids.

Approved by Governor on Thursday, March 12, 2026
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Bill Summary · SB 335

Legislative bill overview

SB 335 would require all public construction contracts in Kansas to include a mutual waiver of consequential damages—meaning contractors and the state/municipalities cannot sue each other for indirect losses like lost profits, business interruption, or reputational harm, only direct costs. This applies to all government-funded construction projects at the state and local level.

Why is this important

Construction disputes frequently involve consequential damages claims that can multiply costs exponentially and lead to protracted litigation. Mandating mutual waivers could reduce litigation risk and potentially lower bid costs, but it also limits compensation options when parties suffer significant indirect losses from delays, defects, or breaches. This shifts financial risk allocation in a way that benefits some parties while exposing others to uncompensated losses.

Potential points of contention

  • Public interest vs. cost savings: Taxpayers benefit from lower bids, but the state/municipalities lose recourse if a contractor's poor performance causes secondary damages (e.g., a delayed school renovation forces costly temporary facilities)
  • Unequal bargaining power: Private contractors must accept this term to bid on public work, potentially disadvantaging smaller firms who cannot absorb uncompensated losses as easily as larger firms
  • Risk transfer asymmetry: Contractors gain predictability but may build "risk premiums" into bids anyway, offsetting savings; public entities lose leverage to incentivize performance quality beyond direct contract requirements

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

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