BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 552


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          CONCURRENCE IN SENATE AMENDMENTS


          AB  
          552 (O'Donnell)


          As Amended  September 4, 2015


          Majority vote


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          |ASSEMBLY:  |79-0  |(May 11, 2015) |SENATE: | 40-0 |(September 9,    |
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          Original Committee Reference:  A. & A.R.


          SUMMARY:  Limits the scope of consequential damages arising from  
          a breach of a public works contract to cover only "delay  
          damages," defined as damages incurred by a public agency for  
          each day after the date on which the work was to be completed by  
          the contractor pursuant to the public works contract.  


          The Senate amendments limit the scope of consequential damages  
          arising from a breach of a public works contract by:


          1)Covering only "delay damages," defined as damages incurred by  
            a public agency for each day after the date on which the work  
            was to be completed by the contractor pursuant to the public  
            works contract; 


          2)Applying the provision of this bill to only those public works  








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            contracts that contain a clause expressly requiring a  
            contractor to be responsible for delay damages; and,


          3)Specifying that this bill shall not be construed to preclude a  
            public agency from including more than one clause for delay  
            damages for specified portions of work when the delay damages  
            have been liquidated to a set amount for each individual  
            clause and identified in the public works contract.


          4)Exempting the following departments, as identified in Public  
            Contract Code Section 10106, from the provisions of this bill:


             a)   The Department of Water Resources;

             b)   The Department of Transportation;

             c)   The Department of Boating and Waterways;

             d)   The Department of Corrections and Rehabilitation;

             e)   The Military Department; and,

             f)   The Department of General Services.


          EXISTING LAW specifies that, for the breach of an obligation  
          arising from a contract, the measure of damages, with certain  
          exceptions, is the amount which will compensate the aggrieved  
          party for all damages likely to result from the breach.  (Civil  
          Code Section 3300.)


          FISCAL EFFECT:  According to the Senate Appropriations  
          Committee, pursuant to Senate Rule 28.8, negligible state costs.


          Analysis Prepared by:                                             
                          William Herms / A. & A.R. / (916) 319-3600  FN:  
          0002242








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