§ 24-91-101 — Legislative declaration

(1) The general assembly hereby
declares that retentions in and delays in the completion of construction contracts
with public entities are a matter of statewide concern and are affected with the
public interest and that the provisions of this article are enacted in the exercise of
the police power of this state for the purpose of protecting the health, peace,
safety, and welfare of the people of this state.

(2) The general assembly hereby further finds and declares that the
construction industry is a significant component of the state's economy; that there
is a substantial statewide interest in fostering the growth and stability of the
construction industry and ensuring that it remains economically viable; that the
ability of construction and design enterprises to obtain and satisfactorily perform
projects at all levels of government affects the construction industry as a whole;
that clauses in public construction contracts which provide that public entities shall
not be required to compensate contractors for delays in the completion of the work
caused by the public entity are adhesive in nature and, if enforced, can have ruinous
financial consequences on affected contractors due to risks over which the
contractor may have no control; that public construction projects are subject to
public appropriation laws which may be in direct conflict with commonly used
construction contract clauses such as clauses which authorize additional payment
to the contractor based on changed conditions; and that there is a substantial
statewide interest in ensuring that the policy underlying the efficient expenditure
of public moneys is balanced with the policy of fostering a healthy and viable
construction industry.

Legislative History

Source: L. 79: Entire article added, p. 995, � 1, effective July 1. L. 89: Entire section amended, p. 1142, � 1, effective April 10. L. 92: Entire section amended, p. 1086, � 1, effective July 1.