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ASA State Advocacy

ASA works in concert with state and local ASA chapters and other local associations to advance subcontractor rights.

Anti-Indemnity
Case Study. January 2005, ASA was victorious in a crucial legal challenge that threatened the Oregon anti-indemnity law. Since 1995, Oregon law provided that neither a subcontractor nor its insurer could be required to indemnify another contractor, except to the extent that the negligence of the subcontractor caused the underlying loss. But a 2004 court case, Walsh Construction v. Mutual of Enumclaw, challenged the anti-indemnity protections and ASA’s Subcontractor Legal Defense Fund submitted the amicus brief that swayed the Oregon court to uphold Oregon’s anti-indemnity laws. Organize an effort to enact risk allocation reform in your state!

Prompt Payment
Case Study. On April 18, 2005, ASA-Greater Kansas celebrated as Kansas Gov. Kathleen Sebelius (D) signed into law the Fairness in Private Construction Contract Act, S.B. 33, a private construction law that provides specialty contractors some of the strongest prompt payment protections in America. The new law requires construction owners to pay prime contractors within 30 days for completed, undisputed work, and contractors to pay their subcontractors within seven days of receipt of payment for subcontractors' work. It also preserves contractors' and subcontractors' ability to assert mechanic's lien rights notwithstanding pay-if-paid clauses, provides for suspension of work after progress payments are 14 days late, limits retainage to 10 percent, establishes equal retainage levels at all tiers, bans out-of-state arbitration and litigation on disputes over Kansas construction, provides attorney fees for the prevailing party in disputes. Organize an effort to enact prompt payment reform in your state!

Retainage
Case Study. On April 25, 2005, ASA of Montana celebrated when Montana Gov. Brian Schweitzer (D) signed into law a reduction in the maximum retainage rate from 10 to 5 percent on public works. The law also establishes equal retainage levels for all tiers, and provides for interest on late progress payments and line-item release of retainage. Organize an effort to enact retainage reform in your state!

Other
Read Engineering News-Record's Oct. 18, 2004, editorial on the need for reforms in the states.

Questions? Contact ASA Director of Government Relations Freeman Smith at fsmith@asa-hq.com.

Recent Headlines from
the States
ASA Prevails in Trust Fund Claims Case Before Colorado Supreme Court Adobe PDF file