News and Updates
January 2023
Click on the links below to read recent CSA news and updates.
CHRO Changes Course - Will No Longer Require "MBE Only" bids" Bids
In recent months, several construction managers, contractors, and subcontractors have become concerned that certain trade packages for state and municipal building projects were being designated as “MBE bid only.” On behalf of several subcontractor clients and the CSA, Steve Kaplan and Paul Fitzgerald of Michelson, Kane, Roster & Barger, PC, asked the Commission on Human Rights and Opportunities (CHRO) to review the applicable statutes (Conn. Gen. Stat. 4a-60g(b)(2) (3) for state projects; Conn. Gen. Stat. 4a-60(b)(3) for municipal projects) and to reconsider this policy.
Per a letter addressed to MKRB, dated January 3, 2023, the CHRO now has agreed to stop requiring Construction Managers (CM’s)’s to parcel out certain trade packages as designated for “MBE only” bids, stating:
“The Commission will not require MBE-only contracts that exclude others from submitting bids. To the extent that may have been done in the past, we have advised our staff that it is not our policy.”
While this by no means eliminates the statutory MBE requirements for state and municipal projects (6 1/4% of contract value), it now allows non-MBE contractors to bid on everything and also gives everyone in the process a lot more flexibility on how to meet the MBE “goals.”
If you have questions, please contact Steven Kaplan or Paul Fitzgerald at MKRB.
Michelson, Kane, Royster & Barger, P.C.
10 Columbus Boulevard
Tenth Floor
Hartford, CT 06106
860-522-1243
Click here to read the CHRO Letter.
Per a letter addressed to MKRB, dated January 3, 2023, the CHRO now has agreed to stop requiring Construction Managers (CM’s)’s to parcel out certain trade packages as designated for “MBE only” bids, stating:
“The Commission will not require MBE-only contracts that exclude others from submitting bids. To the extent that may have been done in the past, we have advised our staff that it is not our policy.”
While this by no means eliminates the statutory MBE requirements for state and municipal projects (6 1/4% of contract value), it now allows non-MBE contractors to bid on everything and also gives everyone in the process a lot more flexibility on how to meet the MBE “goals.”
If you have questions, please contact Steven Kaplan or Paul Fitzgerald at MKRB.
Michelson, Kane, Royster & Barger, P.C.
10 Columbus Boulevard
Tenth Floor
Hartford, CT 06106
860-522-1243
Click here to read the CHRO Letter.
Update on CSA-UConn Meetings
Members of the University of Connecticut’s (UConn) Planning, Design, and Construction Team joined CSA for a discussion last fall that gave participants a chance to engage in an interactive conversation to enhance overall communications and productivity when working on construction projects at UConn. At the September Meeting, UConn representatives included:
As a follow-up to this discussion, the UConn Construction Team joined a CSA for a virtual conversation in December. UConn provided an update on the topics covered at the initial meeting and reviewed other modification orders and fee adjustments.
UConn’s Colleen Schuh, the Associate Director of Quality Assurance and Compliance, joined the Webinar with Laura Cruickshank and Robert Corbett.
The following are some of the primary meeting outcomes, many of which provided encouraging news for Connecticut subcontractors:
UConn has:
The meetings between CSA and UConn have been very productive, and the conversation will continue during a meeting this coming April. Stay tuned for more details.
The December Webinar is available for purchase if you did not attend the latest meeting.
Click here for the purchase form.
- Laura Cruickshank, FAIA, Associate Vice President, Master Planner, and Chief Architect; and
- Robert Corbett, Executive Director and Director of Real Estate and Regional Projects
As a follow-up to this discussion, the UConn Construction Team joined a CSA for a virtual conversation in December. UConn provided an update on the topics covered at the initial meeting and reviewed other modification orders and fee adjustments.
UConn’s Colleen Schuh, the Associate Director of Quality Assurance and Compliance, joined the Webinar with Laura Cruickshank and Robert Corbett.
The following are some of the primary meeting outcomes, many of which provided encouraging news for Connecticut subcontractors:
UConn has:
- Modified its retention policy. The University will no longer hold retention of 7 1/2 % for construction projects. Instead, it will hold just 5 1/2 % for retention.
- Started analyzing retainage on every application and for each trade and will try to allow a release of retainage at 50% completion of the job.
- Developed a wage rate schedule that is now a part of the bid package. Click here to review UConn’s rate schedule here.
- Work at the legislative level to change the law that requires every job over $500,000 to be pre-qualified.
- Review labor rates on a multi-year project annually.
- Review the requirement to include General Liability Insurance costs in Overhead and Profit instead of in the Labor Rate.
- Work to expedite the Change Order/Payment Process.
The meetings between CSA and UConn have been very productive, and the conversation will continue during a meeting this coming April. Stay tuned for more details.
The December Webinar is available for purchase if you did not attend the latest meeting.
Click here for the purchase form.
Pass-Through Claims – Working on a Potential Legislative Solution
CSA is very concerned about the inability of subcontractors on State of Connecticut projects to assert “pass-through claims” against the State. This issue typically arises when the State denies (or ignores) a change order request, in whole or part, which a subcontractor and the general contractor/construction manager (GC/CM) could jointly assert as a claim against the owner on private construction contracts. Unfortunately, they cannot do so on a state project, given the present law in Connecticut.
The CSA, and other industry groups, are continuing their efforts to change the law on this issue and bring Connecticut in line with the law for federal contracting – and also for every other state in the U.S. The ultimate goal is to permit subcontractors and GCs/CMs to assert “pass-through claims” against the State.
To this end, please let the CSA know if you have encountered this problem on any State of Connecticut projects during the past five years. The only information we need is the name of the project and a 1-2 sentence description of the problem you encountered regarding not being able to assert a “pass-through claim.”
All information you provide will be confidential and only used for general reference purposes.
Click here to respond with your comments.
The CSA, and other industry groups, are continuing their efforts to change the law on this issue and bring Connecticut in line with the law for federal contracting – and also for every other state in the U.S. The ultimate goal is to permit subcontractors and GCs/CMs to assert “pass-through claims” against the State.
To this end, please let the CSA know if you have encountered this problem on any State of Connecticut projects during the past five years. The only information we need is the name of the project and a 1-2 sentence description of the problem you encountered regarding not being able to assert a “pass-through claim.”
All information you provide will be confidential and only used for general reference purposes.
Click here to respond with your comments.
