1.1                          A bill for an act 
  1.2             relating to contracts; regulating public works 
  1.3             contracts; proposing coding for new law in Minnesota 
  1.4             Statutes, chapter 15. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [15.411] [PUBLIC WORKS CONTRACTS; NO DAMAGES 
  1.7   FOR DELAY CLAUSES.] 
  1.8      Subdivision 1.  [DEFINITION.] As used in this section, the 
  1.9   term "public works contract" means a contract of the state, or a 
  1.10  county, city, town, school district, special district, or any 
  1.11  other political subdivision of the state, for the construction, 
  1.12  alteration, repair, addition to, subtraction from, improvement 
  1.13  to, or maintenance of any building, structure, highway, bridge, 
  1.14  viaduct, pipeline, railway, public works, or any other works 
  1.15  dealing with construction.  The term includes, but is not 
  1.16  limited to, moving, demolition, or excavation performed in 
  1.17  conjunction with the work specified in this subdivision. 
  1.18     Subd. 2.  [UNENFORCEABILITY.] Any clause in a public works 
  1.19  contract that waives, releases, or extinguishes the rights of a 
  1.20  contractor to seek recovery for costs or damages, or seek an 
  1.21  equitable adjustment, for delays, disruption, or acceleration in 
  1.22  performing the contract is void and unenforceable if the delay, 
  1.23  disruption, or acceleration is caused by acts of the contracting 
  1.24  public entity or persons acting on behalf of the public entity 
  1.25  for which the public entity is legally responsible. 
  2.1      Subd. 3.  [SEVERABILITY.] When a contract contains a 
  2.2   provision that is void and unenforceable under subdivision 2, 
  2.3   that provision must be severed from the other provisions of the 
  2.4   contract to the extent that it is void and unenforceable.  The 
  2.5   fact that the provision is void and unenforceable does not 
  2.6   affect the other provisions of the contract. 
  2.7      Subd. 4.  [SCOPE AND EFFECT.] Subdivision 2 does not make 
  2.8   void and unenforceable any contract provision of a public works 
  2.9   contract that: 
  2.10     (1) requires notice of any delay, disruption, or 
  2.11  acceleration by the party affected thereby; 
  2.12     (2) provides for reasonable liquidated damages; or 
  2.13     (3) provides for arbitration or any other procedure 
  2.14  designed to settle contract disputes. 
  2.15     Sec. 2.  [EFFECTIVE DATE.] 
  2.16     Section 1 is effective August 1, 2001, and applies to 
  2.17  public works contracts entered into on or after that date.