It is not clear why the General As-
sembly opted to vary from the com-
monly used effective date for
legislation affecting contracts - that
the effective date of the legislation
is a certain date and applies to con-
tracts “entered into” on or after that
date. This amendment’s much
broader affective trigger date (con-
tracts “entered into, amended, or re-
newed”) presents the opportunity to
review existing open contracts and
determine whether it would be in
one’s interest to amend or renew
these contracts to take advantage of
this statutory change. Beyond the
obvious and common amendments
to a contract, there is disagreement
in the industry as to what consti-
tutes a renewed or amended con-
tract. For example, in this context,
does the execution of a change
order render a contract “amended?”
Does a change to an existing design
or construction contract that makes
a change only to the contract’s in-
demnity provision constitute an
“amended” contract where the
change to the contract was made
solely for the purpose of taking ad-
vantage of the amended statute?
Paul Davis is a construction lawyer
with Conner Gwyn Schenck PLLC,
based in Raleigh. He has studied and
briefed virtually every aspect of con-
struction contract law and concentrates
his practice in the areas of construction
arbitration and litigation and contract
drafting and negotiation for public and
private clients, including general con-
tractors, construction managers, and
subcontractors. He can be reached by
email at pdavis@cgspllc.com
or by phone at (919) 789-9242
(Ext. 2343).

ASSOCIATION NEWS
LaChase Construction, Watson
Electrical win major ABC EIC
awards LeChase Construction took
home the General Contractor Pro-
ject of the Year award for the Duke
University Crowell quad residence
hall renovation and Watson Electri-
cal Construction Company received
the Specialty Contractor Project of
the Year award for the Union Station
restoration and renovation - phase II
project, at the annual Associated
Builders and Contractors (ABC) Ex-
cellence in Construction awards cer-
emony on Nov. 7.

See the complete list of win-
ners here.

Associations lobby for Cash
Abated Bond (CAB) to resolve
capital spending funding disputes
A coalition of 12 organizations
has urged Gov. Roy Cooper and the
General Assembly to resume nego-
tiations on capital spending before
time runs out for this year.

“With the Senate making moves
to close down the session for 2019
this month, numerous issues have
been left unresolved, including au-
thorization for more than $1.3 billion
in non-transportation construction
spending,” The Carolinas Associ-
ated General Contractors (CAGC)
say in a statement.

The dispute that appears to be
holding up the funding is a differ-
ence between the legislature, which
wishes to implement a “Pay-Go”
program to achieve the desired pro-
jects, and Gov. Cooper, who prefers
to seek voter approval for bonds to
finance the work.

The compromise, the associa-
tions believe, is what they call a
Cash Abated Bond (CAB), a “hybrid
approach that blends the best of
both approaches.”
The concept is simple. Voters au-
thorize the full construction pro-
gram over a period of 6-10 years for
instance, essentially authorizing the
sale of bonds; however, the Legisla-
ture may infuse cash into the con-
struction program annually, which
then decreases the bond obligation
by that amount provided. Essentially
it’s a reverse line of credit for the
state. In a note to members, CAGC out-
lines the concept and seeks mem-
bers’ assistance to “help lobby your
State representatives to come up
with a solution to the stalemate. We
ask our members to contact their
House and Senate representatives
and make them aware that this
coalition has offered a compromise
and request they support action on
authorizing capital spending before
then end of this year. You can find
your legislative representatives at
this link:
https://www.ncleg.gov/RnR/Repres entation.”
CAGC Young Leaders refurbish
Catherine’s House in Operation
Give Back
The Carolinas Associated Gen-
eral Contractors (CAGC) Young
Leaders group recent spent a day at
Catherine’s House in Belmont —
supporting the organization that
provides shelter for women and
children in transition from home-
lessness. The young leaders spent the day
painting and refurbishing three bed-
rooms through the Operation Give
Back program, CAGC reports on its
Facebook page.

“Young leaders have a strong
passion for making a difference in
their communities,” the group re-
ported. The North Carolina Construction News — NOV/DEC 2019 — 9