Construction alliance files suit against MTA, state over rules that penalize contractors for delays and const overruns

An organization 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 has reported.

Thel awsuits were filed on Nov. 28. in state and federal courts in New York by the Alliance for Fair and Equitable Contracting Today Inc. Five trade associations representing construction and engineering firms formed the organization.

See court filing here.

WSJ reports that the lawsuit relates to 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.”