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NJ S4028
Bill
Status
6/30/2025
Primary Sponsor
Paul Sarlo
Click for details
AI Summary
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State agencies acting as property owners on construction projects may withhold no more than two percent of each partial payment owed to contractors who provide a performance bond within 15 days of the award or conditional award
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The two percent withholding cap does not apply to contractors who have had a contract terminated for cause within the five years prior to the current award, allowing State agencies discretion to withhold higher amounts in those cases
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Amends P.L.1992, c.133 (the existing construction contract payment law) which governs payment timelines and remedies for contractors, subcontractors, and subsubcontractors on improvement projects
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Takes effect immediately upon enactment
Legislative Description
Limits amount of payment that State agency as property owner may withhold from certain contractors on State construction contracts to two percent of amount due.
Labor
Last Action
Received in the Assembly, Referred to Assembly Labor Committee
7/24/2025