The ASA did a very nice job in providing contractors with template letters to use in order to help contractors have their voices heard. I will copy the instructions and template letters below for use by contractors with a vested interest in these issues.
Would
you like 5% Retention in public projects?
IF
SO... HELP MAKE SURE THAT Senate Bill 293 is signed into law by the
Governor.
YOUR
company needs to be listed in support because dozens of public agencies are
opposing it right now!
Here's
what to do:
1.
Copy
and paste the sample letter below onto your letterhead
2.
MAIL
it to the Governor TODAY
3.
FAX
it to his staff TODAY at (916) 558- 3177
4.
FAX
it to ASAC's office at (530) 662- 2865 (We will put you on the support
list.)
5.
SHARE
this email with other GC's and Subcontractors TODAY (all support the
bill)
|
LETTER Supporting 5%
Cap On RETENTION on Public Works:
On
Your Letterhead:
|
The
Honorable Jerry Brown
Governor
State of
California
State
Capitol
Sacramento,
CA 95814
Dear
Governor Brown,
Our
company supports SB 293 which caps retention in public works projects at 5%,
provides for speedier payments, and protects payment rights of sub-tier
subcontractors.
Timely and
adequate cash flow is absolutely essential in construction. If more than 5% is
withheld from my earned payments I cannot timely purchase materials, nor can I
pay some of my employees' salaries or benefits.
When this
occurs, jobs are lost and projects are delayed... at additional taxpayer
expense!
The CA
Department of Transportation has utilized zero retention (0%) since January 2009
pursuant to Senate Bill 593 (Margett). According to DOT, its construction
projects have NOT ENCOUNTERED ANY PROBLEMS related to 0% retention. This proves
that reduced retention works! The Federal government also uses zero retention on
projects it funds!
This bill
is good for business and our employees. I ask that you sign SB 293.
Thank
you.
Sincerely,
|
SB 474
Needs Your Letter
to the Governor
TODAY!
|
Would you like NOT to be liable
for damages caused by other contractors?
IF
SO... HELP MAKE SURE THAT Senate Bill 474 is signed into law by the Governor.
YOUR
company needs to be listed in support because general contractors are opposing
it right now!
Here's
what to do:
1.
Copy and paste the sample letter below to your letterhead
2.
MAIL it to the Governor TODAY
3.
FAX it to his staff TODAY at (916) 558- 3177
4.
FAX it to ASAC's office at (530) 662- 2865 (We will put you on the support
list.)
5.
SHARE this email with other Subcontractors TODAY
|
LETTER Supporting INDEMNIFICATION
Reform:
On
Your Letterhead:
|
The
Honorable Jerry Brown
Governor
State of
California
State
Capitol
Sacramento,
CA 95814
Dear
Governor Brown,
Our
company asks that you sign SB 474 (Evans) into law. The bill rightly apportions
liability for damages and defense costs to those who actually caused the
damages.
I know of
cases where just the defense costs were four times the estimated damage; having
to pay these costs (and fees) when one
hasn't
caused the damage is simply not right. Our State's existing law actually serves
as a tool to force us or our insurers to pay for everything (unless another
contractor is completely...100%... responsible for causing the damage).
A few
years ago, the statutes were amended to remedy this problem in home building
construction. SB 474 similarly applies to commercial projects and certain public
works.
Comparative
negligence is an equitable tenet in law that has been upheld in court decisions
for centuries in other states and countries, yet California's statutes have
harmed subcontractors like me because they don't parallel that
policy.
This is a
long overdue proposal deserving of your support and signature. Please sign SB
474.
Sincerely,
|
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