CS/CS/SB 346 (DiCeglie) requires contracts for construction services between a local government and a contractor to include a “punch list” of items to render complete, satisfactory and acceptable the construction services contracted for, which outlines the estimated cost of each item necessary to complete the work. The bill requires the local government to pay the entire contract balance, except for 150% of the portion attributed to those projects on the list, within 20 days after the list is created. It limits a local government’s ability to withhold certain amounts under the contract to only those subject to a written good faith dispute or claims against public surety bonds. A local government must pay the undisputed portions of a contract within 20 days. It requires the local government to pay the contractor for the remaining list of projects upon their total completion. The bill makes similar changes to requirements for construction contracts with public entities. Lastly, the bill amends the definition of “public works project” by preempting any local preference requirements in competitively procured public construction projects when any state funds are used for the project. 

Effective date: July 1, 2023. (Branch)