Subcontractors Trade Association
A.J. McNulty & Co., Inc.
I hope that everyone is having an enjoyable summer. As you unwind during these last few weeks of warm weather, I hope you will find this newsletter to be a good beach read. Part of it may seem like a horror novel, but I assure you, it’s not fiction. I’m speaking of the article by STA Member Kaufman Dolowich Voluck outlining the details of the new MTA Debarment Rules. This is an issue that will affect every contractor that does public work. In simple terms, a five-year automatic debarment of a contractor can be issued for a variety of reasons, including:
- failure to substantially complete its contract work within 10% of the allotted time frame;
- failure to progress the work so that it will be substantially complete within 10% of the allotted time frame;
- presenting claims for additional compensation that are denied in an amount that exceeds the contract by 10% or more.
Under these provisions, once automatically debarred, a vendor’s only recourses are the courts or an appeal to the Governor’s Counsel.
The STA submitted a letter during the 60-day comment period under the umbrella of the Building Trades Employers’ Association, strongly urging the MTA reconsider these draconian rules. We will keep our membership updated on this issue as it unfolds.
Best wishes for a safe and happy remaining summer season. I look forward to seeing many of you on September 10 at our General Membership Meeting!