The New York State 2013 Budget Bill and Its Effects on Design Build

This following is a summary of the design build provisions set forth in Governor Cuomo’s 2013 Budget and how they impact on the Design Build delivery system in New York State prepared by Mark C. Kriss, Esq. (NYSSPE Legislative and Legal Counsel). Additionally, proposed amendments are detailed below.

The Governor’s budget proposal (S 2605/A 3005 – 2013) respecting design-build in large measure mirrors the Governor’s 2011 design build legislation (S 50002/A 40002 – 2011).  However, the 2013 Budget Bill applies to all state agencies and other state entities, with the exclusion of SUNY and CUNY.  (The original statute authorized design-build for a limited number of state entities including the State Thruway Authority, the Department of Transportation, the Office of Parks, Recreation and Historic Preservation, the Department of Environmental Conservation and the State Bridge Authority.)  Additionally, the original law applied to projects greater than 1.2 million dollars.  The 2013 proposal eliminates the 1.2 million dollar threshold, except for projects undertaken by the Department of Transportation, Parks and Recreation and Environmental Conservation. [Read more…]

Frequently Asked Questions on Design-Build Matters in New York State

Note: Please note that this post was recently updated on 3-18-15 and FAQ numbers 11, 12 & 13 were added based on questions received.

  1. Can a contractor and design professional provide design-build services to a third-party in New York?
    1. Answer
      1. Design-build services in New York can only be provided when the project owner, contractor, and design professional sign a three-way contract.  The contract must expressly segregate design services and provide for payment to the design professional for such services (See question 11 regarding payment methodologies.).
      2. As further described in the responses to questions below, a design professional who provides professional services while under contract with the contractor could be charged with professional misconduct for aiding and abetting the offering of professional services by a party (the contractor) not authorized to offer or provide such services.
      3. To apply case law and to better ensure they are not offering professional design services illegally, some contractors are including the design professional’s name and fee in their contract with the project owner.  However, this practice does not assure that by entering into a contract with only the contractor, the design professional will not be charged with professional misconduct as described in responses to questions below. [Read more…]