Authors: Christopher K. LeMieux, Liz Lambert, and Mary Claire Kramer

Act No. 329 (SB No. 83) – Change Orders in Public Contracts made pursuant to R.S. 38:2212(M) now must contain itemized documentation as to equipment used and labor costs. Further, unit price change orders must be submitted to the designer of record.

With the passage of this law, there are now clearer parameters on change order procedure for public contracts. First, equipment and labor costs must now be itemized in a change order. Further, unit price change orders AND any change order requiring new pricing must be submitted to the designer of record, or in the absence of a designer, the public entity, within 30 days from the date of discovery of the work to be performed by the change order.

For redesign change orders, the redesign shall not take more than 90 days from the date of notification by the contractor to the designer (or public entity) of the discovery of work to be performed by the change order. Once the redesign is complete, the contractor shall submit the cost estimate to the designer of record or in the absence of the designer, the public entity, for the change order within 30 days for the redesigned work under the change order.

Lastly, for any change order, the public entity shall have 45 days from the submittal of the change order to the public entity, to negotiate, and approve or reject the contractor’s proposed cost estimate of the work to be performed by the change order. Extensions of time may be granted by mutual agreement or shall be granted as necessary for the public entity to obtain governmental approval. The contractor shall not be required to provide to the public entity any schedule updates incorporating the change order until that change order is executed unless the schedule is needed for evaluation of the proposed change order. None of these provisions shall be waived by contract.

Act No. 379 (HB No. 573) – Expands prohibited provisions in public contracts listed in La. R.S. 38:2195 and La. R.S. 48:251.7.

With the passage of this law, public contracts (La. R.S. 38:2195) or DOTD contracts (La. R.S. 48:251.7) cannot contain any contractual language that requires a contracting private party to assume liability for damages arising out of injuries or property damage to public entity caused by the negligence of anyone other than the contracting private party.

Previously, La R.S. 38:2195 and La. R.S. 48:251.7 only prohibited contractual provisions which required the public entity or DOTD to assume liability for damages arising out of injuries or property damage to the contracting parties or to third parties caused by the negligence of anyone other than the public body or the department.

Stated otherwise, HB No. 573 now requires every entity to assume liability for their own negligence. This change does not affect provisions naming another as a co-insured or additional beneficiary in a contract of insurance.

Act No. 113 (HB No. 80) – Amends La. R.S. 38:2295 (C) to change the length of time a prime design professional has to approve or deny a product submission and remove any automatic approval upon design professional’s failure to respond.

This amendment authorizes a potential supplier to submit a product other than that specified in the contract documents for prior approval no later than 14 working days prior to opening of bids. The prime design professional then has 10 days to respond. The bill also repealed prior law that deemed a submitted product approved if the design professional failed to respond within the allotted time.

Previously the submittal time for contractors was seven days after the opening of bids and the design professional only had three days to respond after receipt of submittal. Now those dates are extended from 7 to 14 days and from 3 to 10 days.