Bill
Bill > A3542
NJ A3542
NJ A3542Requires certain public contract bid advertisements to contain certified cost estimate ranges, specifies grounds for rejection of all bids, and requires 50% guaranty on bids; designated as the Fairness in Bidding Act.
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
This bill, designated as the Fairness in Bidding Act, would amend advertising and notice provisions of the "Local Public Contracts Law," P.L.1971, c.198 (C.40A:11-1 et seq.); the "State College Contracts Law," P.L.1986, c.43 (C.18A:64-52 et seq.); the "County College Contracts Law," P.L.1982, c.189 (C.18A:64A-25.1 et seq.); the "Public School Contracts Law," N.J.S.18A:18A-1 et seq.; P.L.2007, c.137 (C.52:18A-235 et al.); and P.L.1954, c.48 (C.52:34-6 et seq.). This bill would require contracting units requesting bids for construction projects projected to cost in excess of $500,000 to advertise their projected cost estimate ranges of the contract and any alternate. The highest amount of a cost estimate range would be limited at no greater than five percent more than the lowest amount. The cost estimate ranges would be required to be attested as reasonable by the individual or firm preparing them. The bill would also revise the laws authorizing the contracting units to reject, for any of various statutorily specified reasons, all construction project bids. These revisions would (1) limit the grounds for such rejection to those currently specified, (2) require any such rejection to be done in good faith, and (3) require a unit to state publicly its grounds for such a rejection. The bill would also permit contracting units to require a bidder to provide a guaranty in the amount of 50 percent of the bid but not in excess of $100,000, payable to the contracting unit, to ensure that if the contract is awarded to the bidder, the bidder will enter into a contract. Currently, contracting units are only permitted to require a guaranty of 10 percent of the bid but not in excess of $20,000. Finally, the bill provides that only one copy of all bid documents shall be required when bids are accepted by mail or hand delivery. This bill would help ensure greater openness in the bidding process and further ensure careful deliberation before a decision is reached to reject all bids.
AI Summary
This bill, known as the Fairness in Bidding Act, aims to increase transparency and fairness in public contracting by requiring that advertisements for construction projects exceeding $500,000 include a certified cost estimate range, with the upper limit no more than 5% above the lower limit, and that these estimates are attested as reasonable by the preparer. It also revises the grounds on which public entities can reject all bids, limiting these reasons to specific, publicly stated, bona fide justifications such as bids substantially exceeding cost estimates or appropriations, project abandonment, or significant changes to project scope, and mandates that any rejection must be done in good faith with publicly stated reasons. Furthermore, the bill increases the required bid guaranty from 10% of the bid (up to $20,000) to 50% of the bid (up to $100,000) to ensure bidders will enter into a contract if awarded, and simplifies bid document submission by requiring only one copy when bids are mailed or hand-delivered.
Committee Categories
Government Affairs
Sponsors (2)
Last Action
Introduced, Referred to Assembly State and Local Government Committee (on 01/13/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2026/A3542 |
| BillText | https://pub.njleg.gov/Bills/2026/A4000/3542_I1.HTM |
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