Bill > H740

This bill establishes new rules for limiting contractor liability in state procurement contracts by introducing a standard framework for damages and financial risk. The legislation creates a presumptive liability limit of no more than two times the contract's value, which can be raised to three times the contract value if the state secretary conducts a risk assessment and indicates the increased liability in the bid solicitation. Before entering a contract, the state secretary must verify that the contractor has sufficient financial resources to cover the potential liability, either through independent means or third-party insurance. The bill explicitly excludes certain types of liability from these limitations, such as intentional misconduct, property damage, and personal injuries. Additionally, the bill allows the secretary to charge up to $250 to review a contractor's financial resources and requires an annual report to legislative oversight committees detailing contracts with liability amounts exceeding two times the contract value. The new provisions will take effect on October 1, 2025, and will apply to contracts awarded, renewed, or amended after that date.

Budget and Finance, Government Affairs

https://www.ncleg.gov/BillLookUp/2025/H740