The bill amends existing laws to prevent public entities, including boards of education and state colleges, from withholding partial payments to contractors due to minor clerical, administrative, or technical errors, known as "de minimis" errors. It clarifies that these errors must not impact the cost, scope, safety, insurance coverage, bonding, or eligibility of the work, and that the contractor must have satisfactorily completed the work associated with the payment. Additionally, the bill stipulates that the payment in question cannot be the final payment due under the contract.

To ensure transparency and accountability, the bill requires public entities and state agencies to provide written notice to contractors detailing any identified clerical, administrative, or technical errors, allowing a correction period of up to 10 business days. If the contractor does not correct the errors within this timeframe, the public entity may withhold future payments or pursue other remedies as permitted by the contract or law. This legislation aims to streamline the payment process for contractors while maintaining necessary oversight for contract compliance and project safety.

Statutes affected:
Introduced: 2A:30A-2, 18A:18A-40.3, 18A:64-76.4, 27:23-6.3, 40A:11-16.3