Bill > S4028

This bill amends existing New Jersey law to limit the amount of money that state agencies can withhold from contractors during construction projects. Specifically, when a state agency is the property owner, the bill restricts withholding to no more than two percent of the amount due on each partial payment, but only if the contractor has provided a performance bond within 15 days of being awarded the contract. The two percent limitation does not apply to contractors who have had a contract terminated for cause within the past five years, in which case the state agency retains discretion to withhold more than two percent of each partial payment. Performance bonds are financial guarantees that protect the property owner by ensuring the contractor will complete the project according to specifications. The bill aims to improve cash flow for contractors and provide some financial predictability while maintaining the state's ability to protect its interests on construction projects with contractors who have demonstrated past performance issues.

Labor and Employment

https://www.njleg.state.nj.us/bill-search/2024/S4028