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 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 includes provisions for timely payments to contractors, subcontractors, and subsubcontractors, ensuring that they receive their payments within specified timeframes. It also establishes that if payments are not made on time, the delinquent party will be liable for the owed amount plus interest. The bill aims to enhance the financial security of contractors working on State projects while providing a clear framework for payment disputes and alternative dispute resolution processes.

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