Construction firms sue NY over penalties for cost overruns
NEW YORK (AP) — A group representing construction companies has sued New York state and the Metropolitan Transportation Authority over rules that penalize contractors for delays and cost overruns.
The Wall Street Journal reports that the lawsuits were filed Monday in state and federal courts in Manhattan by the Alliance for Fair and Equitable Contracting Today Inc. The group is a nonprofit formed by five trade associations that represent construction and engineering firms.
The companies are suing over rules instituted this year by Democratic Gov. Andrew Cuomo and the state-controlled MTA that bar companies from doing business with the state if their projects go significantly over budget. The alliance says the rules don’t allow for mitigating circumstances.
A Cuomo spokeswoman says the rules are intended to make sure taxpayers “aren’t getting ripped off.”
Information from: The Wall Street Journal, http://www.wsj.com