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Freeholders Oppose Proposed Changes To Construction Contracts
TOMS RIVER - Getting quality work at the best price is how Ocean County likes to view its current practices when it goes out to bid on capital projects. However, two proposed state measures focusing on construction contracts could bring a negative change to the way Ocean County currently does things, according the Ocean Coun- ty Board of Freeholders.
"We would rather continue to meet the requirements of current contract laws than have the state begin to tamper with measures that already work," said Freeholder Director John P.
Kelly, who serves as director of Law and Public Safety.
"State proposals to make changes to these laws will
not improve what we do."
One piece of legislation being proposed could result in the county paying more than the price agreed upon in an approved contract, said Freeholder Joseph H. Vicari.
"This legislation is flawed and is not necessary," Vicari said. "It would impose regulatory measures that would only increase the cost of the contract in addition to our administrative costs."
The legislation - Assembly bill A-4384 and its companion Senate bill, S-2955 - would require every construction contract entered into pursuant to the local public contracts law to contain a provision for renegotiation upon the fluctuation of the price of a key construction material.
"If in the middle of a project the price of steel increases dramatically, under this law, we would be obligated to renegotiate what was the original contract," Vicari said. "This would have a significant adverse impact upon the public contracting operations of county government statewide."
In addition, counties would have a very difficult time balancing budgets if there was an open-ended process to what a project could cost, Vicari added.
"If a budget called for a $200,000 appropriation for a
project, where would counties find the money if that same project turned out to
be $500,000 because of this legislation?" Vicari asked. "This is just not a sensible measure, and could cause financial chaos for counties."
A second proposal - Assembly Bill A-4393 and its
companion bill, Senate Bill S-2878 would require county governments to publish
projected cost estimate ranges in the construction bid, and also mandate that
each published cost estimated range be attested to by the individual or firm
preparing the bid advertisement. In addition, the proposed legislation would restrict the ability of county governments to reject bids.
"This is truly another case of attempting to fix something that is not broken," Vicari said. "Publishing the estimate of a project undermines competition in the public bidding process."
"There is no benefit to county government should this legislation be implemented," he said.
The freeholders expect to adopt resolutions urging
opposition to both measures.
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