CSA Legislative Accomplishments and History

2009

CSA achieved a legislative victory this past session with the passage of a new law, Public Act No. 09-146, pertaining to change orders. The law became effective on July 1, 2009. Now, payment requisitions and change orders on both public projects for which a payment bond is required, and on private commercial projects requires that a “statement” be applied to all requisitions submitted by both general contractors and subcontractors. The statement must show the status of all pending construction change orders, other pending change directives and approved changes to the original contract or subcontract.

Click Here to View Public Act No. 09-146

2008

In 2008 the General Assembly’s General Law Committee approved a measure that would allow subcontractors to pass through claims to the public owner, thereby allowing subcontractors a means of bringing legitimate claims before the owner without having to obligate their general contractor for this liability.

The “pass-through claims” proposal was sent to the Transportation Committee where no action was taken on the measure.   This is the second consecutive year that this measure has won approval from the General Law Committee, but died in another committee. Those opposed to the bill argue that the state will have to pay out millions in claims. The industry argues that if these are legitimate claims, then the awarding authority should be held liable.  

During the 2008 legislative session, CSA encouraged members to contact the Transportation Committee to ask that they support the legislation.

2007

In 2007 CSA established its 2007 legislative priorities at a meeting attended by Connecticut Representative Thomas Colapietro (D) Bristol.  Priorities include:

• Reduction of public and private retainage requirements to a maximum of 2.5%;
• Payment of full retention with substantial completion of work;
• Increasing time frame for subcontractor to file valid lien from 90 to 120 days;
• Elimination of state provision allowing substitution of securities for retainage;
• Notification from public awarding authorities when payments are made to general contractors/construction managers with detail indicating which subcontractor payments make up the general contractor’s periodic payment.
  

2006

In 2006, CSA partnered with the Connecticut Bar Association to support a proposal to allow for pass-through claims for subcontractors on public construction.

CSA joined forces with the Construction Law Section of the Connecticut Bar Association to attempt to eliminate the barring of pass through claims by subcontractors.  While this bill did not win passage, CSA continues to work for passage. Connecticut is the only state in the country that does not allow pass-through claims for subcontractors.

2005

In 2005 CSA supported a proposal to require subcontractor pre-qualification on major state and pubic construction contracts. In an effort to secure the same type of stringent bidder requirements that now exists for general contractors, CSA supported the establishment of similar requirements for over 21 subcontract trades when their portion of the project exceeds $500,000.  The law passed and went into effect in 2007.

DAS Frequently Asked Facts

2004

With the help of Senator Thomas Colapietro (D-Bristol), the Small Business Protection Bill was passed in 2004. 

This legislation requires stricter payment guidelines to help subcontractors collect the money they are owed from construction managers, general contractors, or owners. It also requires owners to pay for labor and materials within thirty days of receiving a written request for payment, general contractors to pay their subcontractors for labor and materials within thirty days of receiving payment, and subcontractors to insist on these provisions in their contracts with other subcontractors and suppliers.

The Connecticut General Assembly also passed a CSA proposal mandating payment and performance bonds for construction managers when working on municipal construction projects.

Prior to the passage of this measure, Connecticut municipalities were not required to mandate a bond for construction managers.  Construction managers were, therefore, not bonded, which offered no protection to the subcontractors on the project should the construction manager default.  With the passage of this legislation the municipality became the financially responsible party should they fail to require the construction manager on a project secure a payment and performance bond from a surety.

In addition CSA supported a bidder pre-qualification initiative to establish a statutory requirements for bidders bidding on major state and other public construction projects.

CSA also worked with the general contractors in support of a legislative initiative to establish quantifiable bidder qualifications for general bidders bidding on state and public construction projects.

2003

A CSA proposal to establish retainage escrow accounts on private construction contracts passed the Connecticut General Assembly in 2003. This was a major legislative achievement, as the new legislation requires that, if requested, private owners and general contractors must establish a non-interest bearing escrow account.  Failure to do so would allow a subcontractor to secure court costs and attorney’s fees if successful in litigation.

In 2003 CSA also joined forces with the Associated General Contractors (AGC) to support issues of mutual concern. CSA and AGC began to work together as equal partners in a collaborative effort to make meaningful changes to correct long-standing issues of inequity for subcontractors and general contractors in the public and private markets.

2002

CSA secured passage of legislation to ameliorate the effects of risk transfer to subcontractors in 2002. With this first legislative victory, CSA effectively spread the risk among all parties associated with a given claim.

2001

In 2001, the Connecticut Subcontractors Association (CSA) was incorporated and the association took immediate action to establish itself as the voice of the Connecticut subcontractor. CSA hosted a meeting at which the Business Practices Interchange was established. This provided subcontractors with a voice to share their issues and concerns with regard to the industry practices of contractors for whom they are working or have worked in the past.

CSA also establishes an on-going relationship with the State Department of Public Works that resulted in an annual “State of the State” program hosted by the Commissioner of Public Works.

In addition CSA establishes itself as the voice of the “lone subcontractor” by standing up to public, private and quasi organizations to insure compliance with state retainage practices.  The association succeeded in having retainage reduced on projects in compliance with the state statute.