Anand Gupta | Construction Law Zone
On June 6, 2024, Connecticut Governor Ned Lamont signed into law Public Act 24-151 (H.B. 5524) (Bill 5524). Bill 5524 authorized and adjusted bonds of the state and provisions related to state and municipal tax administration, as well as addressed school building projects. Notably, Bill 5524 removed the ban on construction managers self-performing work on public school construction projects, effective July 1, 2024. Allowing construction managers to self-perform certain portions of the work, such as general trades, subject to the standard bidding requirements, is a common industry practice that, theoretically, reduces total project costs by reducing the amount of subcontracted work. However, proponents of banning self-performance argue that construction managers have too much information to bid fairly and competitively.
On July 1, 2024, Governor Lamont signed into law S.B. 501 (Bill 501), which was brought to the Connecticut General Assembly floor during the June 2024 Special Session. Bill 501 is an omnibus bill that addresses motor vehicle assessments for property taxation, innovation banks, the interest on certain tax underpayment, the assessment on insurers, the South-Central Connecticut Regional Water Authority charter, specific state historic preservation officer procedures, and, again, school building projects. Due to political fallout, Bill 501 reinstates the ban on construction managers self-performing work on public school construction projects. By signing Bill 501 into law on July 1, 2024, the same day that the allowance of self-performance in Bill 5524 was to be made effective, Governor Lamont and the state legislature ensured that no construction manager may self-perform work on public school construction projects.
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