Entries Posted in Client Alerts

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Kevin Laurilliard, an attorney who practices construction law at McNamee Lochner P.C., obtained an important precedential decision that applies to New York State private construction projects.

The New York State Appellate Division for the Third Department ruled that a contractor may have the legal right to opt for expedited arbitration in lieu of litigation, notwithstanding an express provision in the written construction contract that mandated litigation. Expedited arbitration can allow a contractor, subcontractor and supplier to settle disputes in a more efficient and timely matter.

Based upon this precedential decision, contractors, suppliers and subcontractors, who provide labor and/or material to private construction projects in New York State where the aggregate costs exceeds $150,000 can now decide to pursue expedited arbitration.

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A. Two Important Changes That Impact Government Procurements In New York.

In May, 2014, New York issued the long-awaited Procurement Guidelines. The Guidelines contain a detailed review of procurement basics and general rules for solicitations. There is a complete discussion of Invitation for Bids (“IFB”) and Request for Proposals (“RFP”), the two major procurement tools. www.ogs.ny.gov/bu/pc/docs/Guidelines.pdf

The second major change concerns procurement ethics. Procurements in New York are subject to the Procurement Lobbying Act. Actions such as providing a vendor with information that is not available to other vendors, accepting a gift, or having lunch with a potential vendor may violate this state ethics law.