The bill, enacted as Act No. 165, introduces a new provision to Louisiana's public works contract law by adding R.S. 38:2191(E). This provision states that if a public works contract is declared null and void due to non-compliance with the relevant legal provisions (R.S. 38:2211 et seq.), it will not impact the amounts that are due and payable under the contract. This includes payments for overhead and profit for work that has already been performed by or on behalf of the contractor.
The bill aims to clarify the financial obligations of public entities in the event of a contract being deemed invalid, ensuring that contractors are still compensated for their work despite any legal issues with the contract itself. The act will take effect upon the governor's signature or, if not signed, after the designated period for bills to become law without a signature.