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Minnesota Legislature

Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language

                            CHAPTER 299-S.F.No. 2890 
                  An act relating to contracts; regulating public works 
                  contracts; proposing coding for new law in Minnesota 
                  Statutes, chapter 15. 
           Section 1.  [15.411] [PUBLIC WORKS CONTRACTS; NO DAMAGES 
           Subdivision 1.  [DEFINITION.] As used in this section, the 
        term "public works contract" means a contract of the state, or a 
        county, city, town, school district, special district, or any 
        other political subdivision of the state, for the construction, 
        alteration, repair, addition to, subtraction from, improvement 
        to, or maintenance of any building, structure, highway, bridge, 
        viaduct, pipeline, railway, public works, or any other works 
        dealing with construction.  The term includes, but is not 
        limited to, moving, demolition, or excavation performed in 
        conjunction with the work specified in this subdivision. 
           Subd. 2.  [UNENFORCEABILITY.] Any clause in a public works 
        contract that waives, releases, or extinguishes the rights of a 
        contractor to seek recovery for costs or damages, or seek an 
        equitable adjustment, for delays, disruption, or acceleration in 
        performing the contract is void and unenforceable if the delay, 
        disruption, or acceleration is caused by acts of the contracting 
        public entity or persons acting on behalf of the public entity 
        for which the public entity is legally responsible. 
           Subd. 3.  [SEVERABILITY.] When a contract contains a 
        provision that is void and unenforceable under subdivision 2, 
        that provision must be severed from the other provisions of the 
        contract to the extent that it is void and unenforceable.  The 
        fact that the provision is void and unenforceable does not 
        affect the other provisions of the contract. 
           Subd. 4.  [SCOPE AND EFFECT.] Subdivision 2 does not make 
        void and unenforceable any contract provision of a public works 
        contract that: 
           (1) requires notice of any delay, disruption, or 
        acceleration by the party affected thereby; 
           (2) provides for reasonable liquidated damages; or 
           (3) provides for arbitration or any other procedure 
        designed to settle contract disputes. 
           Sec. 2.  [EFFECTIVE DATE.] 
           Section 1 is effective August 1, 2002, and applies to 
        public works contracts entered into on or after that date. 
           Presented to the governor March 26, 2002 
           Signed by the governor March 27, 2002, 3:38 p.m.