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 applies 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 terminated 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 State laws, and it emphasizes that disputes regarding payment failures can be submitted to alternative dispute resolution processes. The bill aims to streamline payment processes for contractors while ensuring that State agencies have the necessary protections in cases of contractor performance issues.

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