South Dakota Becomes First State to Adopt Consensus Contracts for Construction

South Dakota became the first state to adopt an innovative set of consensus contract documents that could reduce both cost and risk of public construction.  Governor Mike Rounds has signed legislation authorizing the use of template contracting documents on March 12, 2009.  Rather than draft contracts from scratch, the state can use ConsensusDOCS as a template to save time and money. Larry P. Zikmund, president and CEO of the South Dakota Building Chapter of the Associated General Contractor commented that "these equitable contract terms will assure that everyone involved - the taxpayer, the user of the buildings, and the builders - will benefit from a fair contract."  The South Dakota Building Chapter and the AGC of South Dakota, Highway-Heavy-Utility Chapter worked closely with AGC national in successfully advocating for the legislation.  The new South Dakota law, known as HB 1212, was sponsored by Representative Charles M. Turbiville and Senator Kathy Miles, and establishes the terms and conditions in the ConsensusDOCS standard contracts as a pre-approved option for any construction project funded by the South Dakota government.  Zikmund notes that South Dakota's legislative action is likely to lead other states looking to save money on construction projects to follow suit. ConsensusDOCS are a library of already-drafted contract documents that are available for use in setting terms between an owner of a project and their contractors.  The documents were created by a broad coalition of more than 20 leading construction organizations, including the Associated General Contractors of America.  Click here for more information about ConsensusDOCS.  AGC members receive a 20% discount on all ConsensusDOCS purchases.