1.1                          A bill for an act 
  1.2             relating to contracts; regulating transportation 
  1.3             public works contracts; proposing coding for new law 
  1.4             in Minnesota Statutes, chapter 15. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [15.411] [TRANSPORTATION PUBLIC WORKS 
  1.7   CONTRACTS; NO DAMAGES FOR DELAY CLAUSES.] 
  1.8      Subdivision 1.  [DEFINITION.] As used in this section, the 
  1.9   term "transportation public works contract" means a contract of 
  1.10  the state, or a county, city, town, school district, special 
  1.11  district, or any other political subdivision of the state, for 
  1.12  the construction, alteration, repair, addition to, subtraction 
  1.13  from, improvement to, or maintenance of any airport, highway, 
  1.14  bridge, railway, transportation public works, or any other works 
  1.15  dealing with transportation construction.  The term includes, 
  1.16  but is not limited to, moving, demolition, or excavation 
  1.17  performed in conjunction with the work specified in this 
  1.18  subdivision. 
  1.19     Subd. 2.  [UNENFORCEABILITY.] Any clause in a 
  1.20  transportation public works contract that purports to waive, 
  1.21  release, or extinguish the rights of a contractor to recover 
  1.22  costs or damages, or obtain an equitable adjustment, for delays, 
  1.23  disruption, or acceleration in performing the contract, to the 
  1.24  extent the delay, disruption, or acceleration is caused by acts 
  1.25  or omissions within the control of the contracting public entity 
  2.1   or persons acting on behalf of the public entity, is against 
  2.2   public policy and is void and unenforceable. 
  2.3      Subd. 3.  [SEVERABILITY.] When a contract contains a 
  2.4   provision that is void and unenforceable under subdivision 2, 
  2.5   that provision must be severed from the other provisions of the 
  2.6   contract.  The fact that the provision is void and unenforceable 
  2.7   does not affect the other provisions of the contract. 
  2.8      Subd. 4.  [SCOPE AND EFFECT.] Subdivision 2 is not intended 
  2.9   to render void and unenforceable any contract provision of a 
  2.10  transportation public works contract that: 
  2.11     (1) precludes a contractor from recovering that portion of 
  2.12  delay, disruption, or acceleration costs to the extent caused by 
  2.13  the acts or omissions of the contractor or its agents; 
  2.14     (2) requires notice of any delay, disruption, or 
  2.15  acceleration by the party affected thereby; 
  2.16     (3) provides for reasonable liquidated damages; or 
  2.17     (4) provides for arbitration or any other procedure 
  2.18  designed to settle contract disputes. 
  2.19     Sec. 2.  [EFFECTIVE DATE.] 
  2.20     Section 1 is effective August 1, 2002, and applies to 
  2.21  transportation public works contracts entered into on or after 
  2.22  that date.