Bill
Bill > S1489
NJ S1489
NJ S1489Increases amount of partial payment withheld by contracting unit for certain contracts entered into from two percent to 10 percent.
summary
Introduced
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 Regular Session
Bill Summary
Under current law, for certain contracts entered into by a contracting unit, the total price of which exceeds $100,000, involves the construction, reconstruction, alteration, repair or maintenance of any building, structure, facility or other improvement to real property, and for which the contractor agrees to the withholding of payments, the contracting unit is required to withhold two percent of the amount due on each partial payment pending completion of the contract. This bill amends the law to increase the amount of partial payment withheld by contracting unit from two percent to 10 percent. The bill also makes technical revisions.
AI Summary
This bill increases the percentage of partial payments that a government entity, referred to as a "contracting unit," must withhold from contractors for certain construction or maintenance projects from 2% to 10%. This change applies to contracts where the total price exceeds $100,000 and the contractor agrees to these payment withholdings, which are held until the contract is fully completed. The bill also clarifies that if a maintenance bond is required after the work is accepted, it will be for no more than 100% of the project costs and last no longer than two years.
Committee Categories
Housing and Urban Affairs
Sponsors (1)
Last Action
Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee (on 01/13/2026)
Official Document
bill text
bill summary
Loading...
bill summary
Loading...
bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2026/S1489 |
| BillText | https://pub.njleg.gov/Bills/2026/S1500/1489_I1.HTM |
Loading...