Bill
Bill > A1547
NJ A1547
NJ A1547Limits amount of payment that State agency as property owner may withhold from certain contractors on State construction contracts to two percent of amount due.
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 prohibits State agencies from withholding more than two percent of the amount due on each partial payment owed to the contractor on State construction projects. This limitation will not apply when a contractor has had a contract terminated for cause in the past five years prior to the contract award.
AI Summary
This bill amends existing law to limit the amount of payment that a State agency, acting as the owner of real property for construction projects, can withhold from contractors on State construction contracts to a maximum of two percent of the amount due on each partial payment, provided the contractor has submitted a performance bond within 15 days of the contract award. However, this two percent limitation does not apply if the contractor has had a contract terminated for cause within the five years preceding the contract award, in which case the State agency has the discretion to withhold more than two percent.
Committee Categories
Labor and Employment
Sponsors (1)
Last Action
Introduced, Referred to Assembly Labor 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/A1547 |
| BillText | https://pub.njleg.gov/Bills/2026/A2000/1547_I1.HTM |
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