Fiscal Note

SB0252 - Amendments to Construction Contracts

State Impact:
Provisions of this bill could increase construction costs for State government up to 0.5 percent. This could be up to $5,000 per $1 million spent on construction. Assuming the five year average of $113.7 million, the increase could total $587,000 - about one-third of that will be from General Fund/ Uniform School Fund. Impacts will likely be absorbed by state construction budgets - potentially reducing funds available for projects. This potential increase in costs would also apply to local governments, public education, non-state funded higher education projects and the private sector. The State may also incur some additional litigation expenses that will be absorbed in DFCM construction budgets.
Individual and Business Impact:
The fiscal impact on contractors and subcontractors could be an increase in revenue.

Office of the Legislative Fiscal Analyst
2/21/2001 11:36:12 AM

Last Revised: 30 August, 2000