This bill amends existing law to limit the amount that State agencies can withhold from contractors on State construction contracts to no more than two percent of the amount due for each partial payment. This provision is applicable only if the contractor has provided a performance bond within 15 days of the award or conditional award of the contract. However, if the contractor has been subject to termination of a contract for cause at any point in the five years prior to the award or conditional award, the State agency retains the discretion to withhold more than two percent of the amount due.

Additionally, the bill clarifies that the rights and remedies provided for prime contractors, subcontractors, and subsubcontractors under this section are supplementary to other legal remedies available under State law. It ensures that disputes regarding payment failures can be submitted to alternative dispute resolution processes, while also stipulating that any civil actions to collect payments must occur within the State, with the prevailing party entitled to reasonable costs and attorney fees. The bill is set to take effect immediately upon passage.

Statutes affected:
Introduced: 2A:30A-2