CT HB05370

Requires construction contracts to include a minimum 15% overhead and profit rate for contractors and subcontractors performing extra work on change orders or directives totaling $25,000 or more, effective October 1, 2018.

Applies the 15% minimum overhead and profit requirement to private construction contracts under section 42-158j and to public works contracts advertised by state agencies (except the Department of Transportation), the Department of Transportation, municipalities, and municipal agencies under section 49-41b.

Mandates that the 15% rate applies to the total value of extra work including all labor, direct supervision, material, and equipment costs required to perform the work.

Maintains existing payment timeline requirements: owners must pay contractors within 30 days of payment requests, contractors must pay subcontractors within 30 days of receiving payment from owners, and subcontractors must pay their sub-contractors within 30 days of receiving payment.