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TO AMEND SECTION 11-35-3040, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CONTRACT CLAUSES IN CONSTRUCTION AGREEMENTS SUBJECT TO THE CONSOLIDATED PROCUREMENT CODE, SO AS TO PROHIBIT A CLAUSE THAT DOES NOT ALLOW PAYMENT OF DAMAGES CAUSED BY DELAY.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 11-35-3040 of the 1976 Code, as last amended by Act 153 of 1997, is further amended by adding at the end:
"(5) Compensable damages for construction delays. A construction contract or subcontract may not include a clause prohibiting the payment of reasonable damages for delays in completion of the project. This section does not limit the right of contracting parties to agree to a liquidated sum as damages for delays in the completion of a construction project."
SECTION 2. This act takes effect upon approval by the Governor and applies to a construction contract entered into after that date.
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